If the United States has a current account deficit and the capital account is zero, which of the following must be true?
A) The balance on the financial account must equal the balance on the current account.
B) Domestic public saving must be less than net foreign investment.
C) Net foreign investment must be negative as well.
D) Domestic private saving must be less than net foreign investment.
C
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The simple circular flow model shows that workers, entrepreneurs, and the owners of land and capital offer their services through:
A. employment agencies. B. product markets. C. business firms. D. resource markets.
In an open economy, the price of a TV will be ________.
A. $175 B. $125 C. $275 D. $75
Which point on the graph below is unattainable because the economy does not have enough resources to produce it?
What will be an ideal response?
In order for a price floor to be effective, it must be set _____________ the equilibrium price, while a price ceiling must be set _____________ the equilibrium price in order to be effective.
a. above; below b. above; above c. below; above d. below; below e. at; at