Would one expect the imports and exports between two countries to be approximately equal?
What will be an ideal response?
No; there is no reason to expect that the purchases from and sales to any specific country will be equal because one country may not want to buy the items the other country produces at a low opportunity cost.
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Which of the following is true of a typical firm in a monopolistically competitive industry?
A) All firms have identical cost structures. B) Product differentiation allows a successful firm to emerge as a market leader in the industry. C) Each firm acts independently. D) The more successful firms have an incentive to merge in order to exert greater market power.
In the Solow model, if f(k) = 2k0.5, s = 0.25, n = 0.1, and d = 0.4, what is the value of k at equilibrium?
A) 1 B) 2 C) 3 D) 4
What makes the macroeconomic performance of the 1993 to 1998 period so unusual is the
a. simultaneous occurrence of unemployment and inflation increases. b. simultaneous occurrence of real GDP decreases and inflation rate increases. c. occurrence of real GDP decreases while the unemployment rate increases. d. simultaneous occurrence of reduced unemployment rates and falling inflation rates.
Reserves currently are so abundant that:
A. the IOER rate is ineffective. B. the Fed cannot affect the federal funds rate. C. the federal funds rate is not easily manipulated with open market operations. D. the Fed prefers to target the discount rate.