If exports and imports both fell, but exports fell less than imports,
a. AD would decrease
b. AD would increase.
c. AD would be unaffected.
d. AD could either increase or decrease.
b
You might also like to view...
The present value formula makes it apparent that:
A) a decline in the interest rate will cause a decision maker to weigh recent period returns relatively more heavily than before the decline. B) an increase in the interest rate will cause a decision maker to weigh distant (or future) returns relatively more heavily than before the increase. C) the present value of a fixed sum decreases as the time until it is to be paid increases. D) all of the above E) both A and C.
In the long run, the higher saving rate leads to a higher level of productivity and income but not to higher growth in these variables.
a. true b. false
Without government, the "for whom" question could not be solved.
a. true b. false
When a particular product has numerous but imperfect substitutes, the demand for that product will tend to be
A) inelastic. B) elastic. C) unitary. D) perfectly elastic.