Which of the following would have the greatest positive impact on a country's domestic economy?
A) An increase in spending on imports from other countries.
B) An increase in spending by foreigners on the country's exports.
C) A decrease in the confidence of foreign investors in the country's economy.
D) A decrease in the incomes of consumers in foreign countries.
B
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A) creates moral hazard but eliminates adverse selection. B) creates adverse selection but eliminates moral hazard. C) creates both moral hazard and adverse selection. D) eliminates both moral hazard and adverse selection.
Most private turnpikes failed to earn profits because
a. tolls were easily avoided. b. it was too costly to carry freight by land carriage. c. they faced extensive competition from steamboats, canals and railroads. d. dishonest gatekeepers often pocketed the tolls collected. e. All of the above.
Changes in aggregate demand can cause fluctuations in _____ and _____ in the short run, and only ____ in the long run
Fill in the blank(s) with correct word
In general, all markets equilibrate at the same speed
Indicate whether the statement is true or false