The government budget deficit tends to decline during the expansion phase of a business cycle because tax revenues ________ and government transfer payments ________.
A) increase; increase B) decrease; decrease
C) decrease; increase D) increase; decrease
D) increase; decrease
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Demand for U.S. dollars by speculators is likely to increase if the dollar is expected to depreciate in the near future
a. True b. False Indicate whether the statement is true or false
Choose the letter of the diagram in Figure 3.1 that best describes the type of shift that would occur in each situation for the market listed on the left, ceteris paribus. Figure 3.1 Shifts of Supply and Demand for Flat-screen TVs: the technology required for flat-screen TV production becomes cheaper.
A. A. B. B. C. C. D. D.
Assume that the government increases spending and finances the expenditures by borrowing in the domestic capital markets. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the real risk-free interest rate and current international transactions in the context of the Three-Sector-Model?
a. The real risk-free interest rate rises, and current international transactions become more positive (or less negative). b. The real risk-free interest rate falls, and current international transactions become more negative (or less positive). c. The real risk-free interest rate and current international transactions remain the same. d. The real risk-free interest rate rises, and current international transactions become more negative (or less positive). e. The real risk-free interest rate rises, and current international transactions remain the same.
Consider the game tree in Figure 12.8. Compared to the dominant strategy outcome, guaranteed coordination would lead to:
A. higher profits for both stores. B. lower profits for both stores. C. higher profit only for Store A. D. higher profit only for Store B.