If there is a decrease in taxes on business firms in a small open economy, it causes the current account to ________ and the equilibrium amount of saving to ________
A) fall; fall
B) rise; remain unchanged
C) fall; remain unchanged
D) rise; fall
C
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One explanation given in the video for the fluctuations of an economy's real growth rate around its potential growth rate is:
A. that there are often shocks to the planned level of spending. B. that there are often shocks to the money supply. C. that the potential growth is inaccurately calculated. D. that there are often shocks to the key growth factors
Redbox rents DVDs. Other things constant, which of the following would likely increase the demand for their DVDs?
A) A rise in the cost of going to the movies B) A fall in the price of DVD players C) A fall in the price of Redbox DVD movie rentals D) Both A and B
When the domestic currency is initially overvalued in a fixed exchange rate regime, the central bank must intervene in the foreign exchange market to ________ the domestic currency, thereby allowing the money supply to ________
A) purchase; decline B) sell; decline C) purchase; increase D) sell; increase
If firms were teams then there would be a problem of
A) free-riding. B) spontaneous order. C) market-based management. D) internal externalities.