In the period 1980-92, United States net national saving fell due to
A) large budget deficits and an increase in private saving.
B) small budget deficits and a decrease in private saving.
C) small budget deficits and an increase in private saving.
D) large budget deficits and a decrease in private saving.
D
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Which of the following statements is true about a simple circular flow model?
A) Producers are buyers in the factors market. B) Producers are neither buyers nor sellers in the product market. C) Households are neither buyers nor sellers in the input market. D) Households are sellers in the product market.
Which of the following is a key factor in opening up trade between countries?
a. Differences in consumer income b. Differences in opportunity costs c. Differences in growth rates d. Differences in consumption patterns
In contrast to a tariff, a quota does not
A) reduce consumers' surplus. B) increase producers' surplus. C) generate revenues for government. D) raise price. E) c and d
The LM curve has a
A. positive slope because a higher interest rate leads to a higher incentive to hold money and thus a higher money supply is needed for equilibrium. B. negative slope because a lower interest rate leads to an increase in the demand for bonds and thus a higher level of domestic production is needed to cause people to continue to hold the same amount of money. C. positive slope because a higher interest rate leads to a decrease in the demand for money and thus a higher level of domestic production is needed to cause people to continue to hold the same amount of money. D. negative slope because a lower interest rate leads to a decrease in foreign investments and thus a higher level of domestic production is needed for equilibrium.