If the current account is in deficit, imports of goods and services exceed exports of goods and services (plus net unilateral transfers)
a. True
b. False
A
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Long-term solutions to communitywide poverty must involve:
A. ways to expand the range opportunities available to the population. B. increasing the value of the currency. C. ways to reduce taxes collected by local governments. D. All of these are true.
In a typical economy, the dollar value of the total output for a period will equal the sum of consumption spending, planned investment spending, government spending, and net tax revenue
a. True b. False
The demand for hamburgers is estimated from this theoretical model:
Q = kPaIbAce, where Q = units per day, P = price per unit, A = advertising budget per month by sellers, I = per capita income of consumers, and e = a random error. In a recent study, one researcher estimated the log-linear form of this equation with regression analysis as: log Q = 2.5 - 0.33 log P + 0.15 log I + 0.2 log A. Explain what the coefficients of log P, log I, and log A reveal about this product.
If a lender expects inflation to be 5 percent, and after a loan is made, actual inflation is 10 percent, which of the following will be true?
a. The lender will receive a lower real interest rate than he expected. b. The loan will be repaid with dollars that are worth more than the lender expected. c. The nominal rate of interest can be expected to fall in the future. d. The lender will gain at the expense of the borrower.