If the U.S. were to revert to a gold standard, trade deficits would:
A. result in gold reserves in the U.S. decreasing.
B. result in high inflation.
C. quickly disappear.
D. result in lower domestic interest rates.
Answer: A
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The market for lawn services is perfectly competitive. Larry's Lawn Service cannot increase its total revenue by raising its price because ________
A) Larry's supply of lawn services is perfectly inelastic B) the demand for Larry's services is perfectly inelastic C) Larry's supply of lawn services is inelastic D) the demand for Larry's services is perfectly elastic
Jim recently graduated from college. His income increased dramatically;from$5000 a year to $60,000 a year. Jim decided that instead of using the bus, he would buy himself a car. This implies that
a. The car is a normal good for Jim b. The car is an inferior good for Jim c. He is equally happy between using the bus and buying a car d. None of the above
If we read that the CPI had value of 120 in 2005, we would know that
a. the typical market basket in 2005 was 20 percent more expensive than in the previous year b. the typical market basket in 2005 was 120 percent more expensive than in the base year c. the typical market basket in the base year was 120 percent more expensive than in 2005 d. the typical market basket in 2005 was 20 percent more expensive than in the base year e. the cost of a loaf of bread is higher now than it has been during the past ten years
Under perfect competition, the market mechanism, without any government regulation, is capable of
a. allocating resources efficiently. b. solving equity problems. c. making the average cost of labor equal to the average cost of all commodities. d. making more income available to the poor.