A country that experiences a large deficit in the merchandise trade account should always aim at eliminating this trade deficit by adopting strict foreign trade policies
a. True
b. False
Indicate whether the statement is true or false
False
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? A country would tend to experience currency appreciation relative to other countries if:
a. the profitability of investments within the country increases relative to the rest of the world. b. people in the foreign currency markets expect the value of the currency to rise in the near future. c. the foreign demand for its exports increases. d. all of the above
A profit-maximizing monopolist will never operate in the portion of the demand curve with price elasticity equal to
A) -3. B) -1. C) -1/3. D) None of the above—the price elasticity does not matter.
If consumption spending increases from $758 to $767 billion when disposable income increases from $912 to $927 billion, it can be concluded that the marginal propensity to consume is:
a. 0.4 b. 0.5 c. 0.7 d. 0.6
If the prices of goods and services were expressed in terms of carved wooden beads, then the carved wooden beads would be serving as a:
A. medium of exchange. B. store of value. C. unit of account. D. mechanism for transforming present purchases into future purchases.