Suppose the U.S. Congress is successful in enacting tariffs large enough to eliminate the current account deficit. What would happen to the level of domestic investment?
A) It would rise and exceed national saving.
B) It would fall to a level equal to national saving.
C) It would not change.
D) It would rise to a level equal to net foreign investment.
B
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The above figure shows Bobby's indifference map for juice and snacks. Also shown are three budget lines resulting from different prices for snacks. This information could be used to determine
A) the slope of Bobby's demand curve for juice. B) the amount by which Bobby's demand curve for juice shifts when his income rises. C) the amount by which Bobby's demand curve for juice shifts when the price of snacks rises. D) All of the above.
What kind of market runs most efficiently when one large firm supplies all of the output?
a) a natural monopoly b) a network c) perfect competition d) imperfect competition
Refer to the above graph of the representative firm in monopolistic competition. Point c is the intersection of the:
A. marginal cost and average total cost curves. B. average total cost and demand curves. C. marginal cost and demand curves. D. marginal cost and marginal revenue curves.
Stagflation can be described as a:
A. Shift right in the aggregate supply curve B. Shift left in the aggregate supply curve C. Period of stable prices and high unemployment D. Period of rising prices and low unemployment