When income increases, the demand curve for an inferior good
A) shifts to the right.
B) shifts to the left.
C) moves up along the demand curve for the product.
D) remains constant.
B
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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
An economy is judged efficient if
a. it is good at producing what people want. b. it produces things that people may not want but in the least wasteful way. c. produces whatever people want in a way that may not be the least wasteful. d. it is a free-market economy and not a command market.
Compared to a tariff, a quota gives the government a better control over the quantity of imports.
Answer the following statement true (T) or false (F)
If the Fed purchases U.S. government securities in the open market, all of the following would occur EXCEPT
A. an expansion of the money supply. B. a fall in bond prices. C. an increase in real Gross Domestic Product (GDP). D. an increase in investment.