Suppose that Jessica's MU/P is 8 for swimming lessons, 12 for voice lessons, and 4 for piano lessons. In order for Jessica to maximize total utility, she should definitely
a. take more swimming lessons
b. take more voice lessons
c. take more piano lessons
d. find some other activities because the values for MU/P are very low
e. take fewer lessons of each type
b. take more voice lessons
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Suppose a country's net exports equal 0. If the volume of imports increases without any change in the volume of exports, the country will experience a ________
A) trade deficit B) budget deficit C) trade surplus D) budget surplus
Everything else equal, if the dollar depreciates against the Chinese yuan:
A) China will stop trading with the U.S. B) China will import more from the U.S. and will export less to the U.S. C) China will export more to the U.S. and will import less from the U.S. D) the Chinese government will buy yuan from the foreign exchange market.
Which is considered fiat money?
(a) Greenbacks (b) Gold coins (c) Silver dollars (d) Silver certificates
Discuss why many economists maintain that continued deficit spending by government is likely to "crowd out" (decrease) investment spending in the long run.
What will be an ideal response?