Worsening terms of trade can be offset by
a. increased productivity.
b. increased competition.
c. reductions in domestic tariffs.
d. increased property taxes.
a. increased productivity.
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When the price level in France increases while the exchange rate and the price level in the United States remain the same, the result is
A) U.S.-made goods become relatively cheaper compared to French-made goods. B) French citizens are more likely to buy U.S.-made goods. C) U.S. citizens are less likely to buy French-made goods. D) All of the above answers are correct.
Detrimental externalities like pollution are a shortcoming of the market mechanism. Do they occur in free market economies alone? Explain with examples.
What will be an ideal response?
In the 1970s, the relationship between stock-market prices and the consumer price index was roughly equal to that of the 1920s, rising in roughly equal amounts
Indicate whether the statement is true or false
In the Keynesian model, money is
A. neutral in the long run, but not in the short run. B. neutral in the short run, but not in the long run. C. neutral in both the short run and the long run. D. neutral in neither the short run nor the long run.