A tax credit for purchases of capital goods causes the interest rate to increase and the exchange rate to appreciate
a. True
b. False
Indicate whether the statement is true or false
True
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"Equilibrium" is a situation in which there are no inherent forces to produce change
a. True b. False Indicate whether the statement is true or false
One reason that the Phillips curve "broke down" is that it
a. is unable to explain short-run movements in inflation and unemployment, but does a better job of explaining long-run movements. b. assumes a quick-acting self-correcting mechanism, and the economy has a very slow self-correcting mechanism. c. is a statistical relationship, and some of the points are not sustainable in the long run. d. cannot explain demand-side inflation, and it collapsed when demand-side inflation was predominant in the 1970s.
If in the third quarter of 2016 total investment spending was $4,768 billion and depreciation was $3,292 billion, then the amount counted in GDP, which is known as gross investment, would be:
A. $1,476 billion. B. $3,292 billion. C. $4,768 billion. D. $8,060 billion.
Explain why current account deficits may or may not be harmful to a country
What will be an ideal response?