If Japan has a trade surplus and the United States has a trade deficit, the trade gap could be eliminated by:
A. expansionary monetary policy in both Japan and the United States.
B. expansionary monetary policy in Japan or contractionary monetary policy in the United States.
C. contractionary monetary policy in both Japan and the United States.
D. contractionary monetary policy in Japan or expansionary monetary policy in the United States.
Answer: B
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In the long run, which of the following will occur if the U.S. federal government eliminates restrictions on migration of Mexican workers to the United States?
a. The United States' total K/L ratio will rise. b. Mexico's total K/L ratio will fall. c. Wages of American workers who compete with Mexican workers for jobs will rise. d. The returns to U.S. owners of capital will remain unchanged.
After a hurricane in Florida knocked out the regional water supply for several days, the demand for bottled water increased sharply. In a market economy, how will this increase in demand affect the equilibrium price and quantity of bottled water?
A. Price will increase, and quantity will decrease. B. Price will decrease, and quantity will decrease. C. Price will decrease, and quantity will increase. D. Price will increase, and quantity will increase.
Which of these is the best explanation of diminishing returns for physical capital?
What will be an ideal response?
All of the following countries have been described as socialist economies, except
A. Norway. B. France. C. Sweden. D. The United States.