All of the following are variables that can be manipulated to affect fiscal policy except one. Which is the exception?
a. Personal income taxes
b. Government expenditures on goods and services
c. Government expenditures on unemployment benefits
d. The federal funds rate
e. Corporate income taxes
d
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A __________ good is one that once produced and provided to one person, provides benefits to other persons.
A. consumption B. investment C. private D. public
A hypothetical open economy has a marginal propensity to import (MPI) equal to 0.2 and a marginal propensity to consume equal to 0.7 . Assume that the economy is initially in equilibrium. What will happen to the equilibrium real GDP if a tourist visits the country and spends $100 that she brought with her?
a. It will not change. b. It will increase by $100. c. It will increase by $200. d. It will increase by $143. e. It will increase by $90.
When the real exchange rate for the dollar appreciates, U.S. goods become
a. less expensive relative to foreign goods, which makes exports rise and imports fall. b. less expensive relative to foreign goods, which makes exports fall and imports rise. c. more expensive relative to foreign goods, which makes exports rise and imports fall. d. more expensive relative to foreign goods, which makes exports fall and imports rise.
The current account balance is equal to
A. Trade balance + services balance - capital account balance. B. Total payments made by residents of the United States to foreigners plus total payments made by foreigners to residents of the United States. C .Trade balance + unilateral transfers. D. Trade balance + services balance + capital account balance.