Refer to the scenario above. Which of the following will happen if Sarah opens a day care facility and takes care of 5 children, in addition to her son, charging $12,000 per year for each child?
A) The country's trade deficit will increase by $2,400.
B) The country's trade surplus will increase by $12,000.
C) The country's GDP will decrease by $12,000.
D) The country's GDP will increase by $60,000.
D
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Which combination of monetary and fiscal policies might policymakers elect to ward off potential inflation?
A) Fed purchase of bonds combined with tax rate increases B) Fed purchase of bonds combined with tax rate decreases C) Fed sale of bonds combined with tax rate increases D) Fed sale of bonds combined with tax rate decreases
Refer to Figure 7-4. With insurance and a third-party payer system, what price do consumers pay for medical services?
A) $25 B) $40 C) $55 D) >$55
Money is:
a. valuable because it is backed by gold. b. any items used in barter. c. an illiquid asset. d. none of these.
If the exchange rate moves from 10 Mexican pesos per U.S. dollar to 12 Mexican pesos per U.S. dollar, then the Mexican peso has ________ and the U.S. dollar has ________.
A. appreciated; appreciated B. depreciated; depreciated C. depreciated; appreciated D. appreciated; depreciated