From 2001 to 2004, the U.S. government went from a budget surplus to a budget deficit. According to the open-economy macroeconomic model, this should have decreased
a. both the supply of loanable funds and the supply of dollars in the market for foreign-currency exchange.
b. neither the supply of loanable funds nor the supply of dollars in the market for foreign-currency exchange.
c. the supply of loanable funds but not the supply of dollars in the market for foreign-currency exchange.
d. the supply of dollars in the market for foreign-currency exchange, but not the supply of loanable funds.
a
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Competitive advantage is not synonymous with comparative advantage
Indicate whether the statement is true or false
When more workers are hired, the firm's output expands at an increasing rate only
a. when the law of diminishing returns is operative b. under conditions of noncompeting labor markets c. if each worker's MPP is positive d. when technology is improved e. when the gains from specialization of labor outweigh all other factors affecting labor productivity
Two major exports for the United States are
A) clothing and office machines. B) soybeans and scientific instruments. C) footwear and fish. D) coffee and diamonds. E) none of the above
In Econland autonomous consumption equals 700, the marginal propensity to consume equals 0.80, net taxes are fixed at 50, planned investment is fixed at 100, government purchases are fixed at 100, and net exports are fixed at 40. The slope of the expenditure line is:
A. 0.20. B. 0.80. C. 0.99. D. 0.90.