Most of the dollars that foreigners have obtained because of our huge current account deficit
A. circulates in foreign countries.
B. are used as reserves.
C. are invested in the United States.
D. are used to pay off old debts to the United States.
C. are invested in the United States.
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The average total cost curve is U-shaped. At the quantity of output where average total cost is at its minimum, is the marginal cost curve above the average total cost curve, below the average total cost curve,
or intersecting the average total cost curve?
By 1860,
(a) less than one-third of Southern farmers owned slaves. (b) most of the workers on Northern farmers were hired laborers. (c) immigrants supplied a significant amount of labor to Northern and Southern farmers. (d) all of the above.
Producers are willing to offer greater quantities for sale at higher prices because
a. they have the incentive to pay the increasing opportunity cost of resources necessary to attract them from alternative uses b. they will decrease their profits by expanding production at higher prices c. the government orders them to do so d. lower prices attract new firms, which have higher costs of production e. they hire superior quality, higher-priced resources as production expands
Assume that the expectation of declining housing prices cause households to reduce their demand for new houses and the financing that accompanies it. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the real GDP and net nonreserve-related international borrowing/lending in the context of the Three-Sector-Model?
a. Real GDP falls, and net nonreserve-related international borrowing/lending becomes more negative (or less positive). b. Real GDP rises, and net nonreserve-related international borrowing/lending becomes more negative (or less positive). c. Real GDP falls, and net nonreserve-related international borrowing/lending becomes more positive (or less negative). d. Real GDP falls, and net nonreserve-related international borrowing/lending does not change. e. There is not enough information to determine what happens to these two macroeconomic variables.