If a country has a trade surplus of $40 billion, which of the following can be true?
A. The country's exports are $140 billion, and its imports are $40 billion.
B. The country's exports are $110 billion, and its imports are $150 billion.
C. The country's exports are $160 billion, and its imports are $120 billion.
D. The country's exports are $120 billion, and its imports are $140 billion.
Answer: C
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If the Federal Reserve wants to prevent a recession, it should ________.
A. decrease the money supply to raise interest rates and lower aggregate demand B. decrease the money supply to lower interest rates and increase aggregate demand C. increase the money supply to raise interest rates and lower aggregate demand D. increase the money supply to lower interest rates and raise aggregate demand
The phenomenon of crowding-out suggests that the positive impact of budget deficits on economic activity are reduced by ________
A) the impact produced by government spending on the environment B) an increase in national savings C) the interest rate effects associated with federal deficits D) the increase in pork barrel projects deficit spending entails
The Commons Problem arises because
A) firms don't maximize profits. B) social and private incentives are not aligned and property rights are missing. C) social cost equals private cost and property rights are missing. D) social benefit equals private benefit and property rights are missing.
Supply-side economists encourage government to reduce taxes, deregulate, and increase spending on research and development because they think that these types of policies lead to greater long-run economic growth
a. True b. False Indicate whether the statement is true or false