Suppose that the Fed decides to increase the growth rate of the money supply in the United States. What is most likely to happen to the U.S. trade deficit and to GDP?
a. The trade deficit will fall; GDP will fall.
b. The trade deficit will rise; GDP will rise.
c. The trade deficit will fall; GDP will rise.
d. The trade deficit will rise; GDP will fall.
c
You might also like to view...
In a competitive price-taker market, the actions of any single buyer or seller will
a. have a negligible impact on the market price. b. have little effect on overall production but will ultimately change final product price. c. cause a noticeable change in overall production and a change in final product price. d. adversely affect the profitability of more than one firm in the market.
Monopolistic competition exists when there is one large firm in an otherwise perfectly competitive market
a. True b. False
Microeconomics focuses on: a. economic growth
b. trade balances. c. unemployment. d. the actions of individual households.
Which of the following statements is correct?
a. If the monopolist's marginal revenue is greater than its marginal cost, the monopolist can increase profit by selling more units at a lower price per unit. b. If the monopolist's marginal revenue is greater than its marginal cost, the monopolist can increase profit by selling fewer units at a higher price per unit. c. When a monopolist produces where price equals the minimum of average total cost, it earns a positive economic profit. d. If the monopolist is earning a positive economic profit, it must be producing where MR = MC.