Which of the following will not cause an increase in U.S. gross exports?

A. An increase in foreign business investment.
B. A decrease in U.S. imports.
C. An increase in foreign consumer income.
D. An increase in foreign wealth.


Answer: B

Economics

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To reduce the principal-agent problem

A) boards-of-directors can tie the salaries of top management to the profitability of the firm. B) managers can inflate profits on financial statements. C) managers can take on more risk than they disclose to investors. D) managers can hide liabilities by not disclosing them on financial statements.

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Under a flexible exchange rate system, which one of the following would not directly affect the exchange rate?

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Suppose the government decided to ease monetary policy, then increase taxes. In the short run in the Keynesian model, the effect of these policies would be to ________ the real interest rate and ________ the level of output.

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Economics