If no one is holding cash, a U.S. trade deficit with China likely means
A. the Chinese are buying more U.S. assets than Americans are buying Chinese assets.
B. the Chinese are selling more U.S. assets than Americans are selling Chinese assets.
C. that next year the U.S. will run a trade surplus with China.
D. the Chinese are buying fewer U.S. assets than Americans are buying Chinese assets.
Answer: A
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According to new growth theory, the accumulation of ________ capital is subject to diminishing returns at the ________ level, but not at the level of the economy as a whole
A) technological; personal B) knowledge; firm C) physical; production D) physical; firm
Tax cuts on business income increase aggregate demand by increasing
A) wage rates. B) government spending. C) consumption spending. D) business investment spending.
Which one of the following statements is TRUE for Norway, a non-euro country?
A) Of course, owners of capital that cannot be moved cannot avoid more of the economic stability loss due to fixed exchange rates when Norway's economy is open to capital flows. B) Even owners of capital that cannot be moved can avoid more of the economic stability loss due to fixed exchange rates when Norway's economy is open to capital flows. C) Owners of capital that cannot be moved can avoid more of the economic stability loss due to fixed exchange rates when Norway's economy is closed to capital flows. D) Even owners of capital that can be moved can avoid more of the economic stability loss due to fixed exchange rates when Norway's economy is closed to capital flows. E) Only owners of capital that can be moved can avoid more of the economic stability loss due to fixed exchange rates when Norway's economy is open to capital flows.
The argument that foreign trade should be restricted to protect domestic employment and output is based on the idea that:
a. consumers are willing to pay higher prices for domestic goods. b. producers will not exploit reduced foreign competition by charging higher prices. c. foreign companies are more costly to deal with than domestic companies. d. sales of imports come at the expense of domestic goods and jobs.