As shown in Exhibit 3, what is the total welfare from imports experienced by consumers and producers after free trade is allowed?
a. d
b. b + d
c. a + b + d
d. a + b + c + d
d. a + b + c + d
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About 6% of annual total federal government expenditures goes toward paying interest on the federal debt
Indicate whether the statement is true or false
You have a bond that pays $60 per year in coupon payments. Which of the following would result in an increase in the price of your bond?
A) The price of a share of stock in the company falls. B) Coupon payments on newly-issued bonds fall to $50 per year. C) Coupon payments on newly-issued bonds rise to $80 per year. D) The likelihood that the firm issuing your bond will default on debt increases.
Use the Application about the price of vanity license plates in Virginia to answer the following question(s).Recall the Application. Because the elasticity of demand for vanity plates is 0.26, then an increase in the price of vanity plates will:
A. decrease total revenues. B. cause no change in the total revenues. C. increase total revenues. D. There is insufficient information to draw a conclusion.
An increase in aggregate demand will have the following effect on potential output:
A. there won't be a change in potential output from an increase in aggregate demand. B. potential output will increase. C. potential output will decrease. D. potential output will increase at first and then decrease.