The trade deficits of the 1980s and 1990s reflect American desire for foreign
A. assets and foreign desire for American goods and services.
B. goods and services and foreign assets.
C. goods and services and foreign desire for American assets.
D. assets now and foreign goods and services in the future.
Answer: C
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Collusion is a situation where businesses:
A. act in their own self-interest and ignore what the other businesses are doing. B. have noncooperative outcomes, because they compete outside the public eye. C. agree to cooperate, and the U.S. government works hard to encourage this behavior. D. agree to cooperate, and their behavior does not serve the public interest.
Considering the euro/U.S. dollar exchange rate, as a U.S. dollar decreases in value versus the euro (holding other factors constant):
A. this is represented by an upward movement along the demand for dollars curve. B. this is represented by a downward movement along the supply of dollars curve. C. this would be represented by an upward sloping demand for dollars curve. D. this would be represented by a leftward shift of the supply of dollars curve.
A rightward shift of long-run aggregate supply without any change in aggregate demand
A. will leave real GDP unchanged. B. increases the price level without any change in real GDP. C. results in a lower price level. D. increases the price level along with an increase in real GDP.
Refer to the above figure. Medicare subsidies have increased the price of medical services to Ps. The quantity demanded of medical services is
A) QM. B) Q0. C) Qd. D) undetermined without more information.