According to the Keynesians,
a. an easy-fiscal tight-monetary policy reduces the trade deficit, such as what occurred during the 1980s.
b. an easy-fiscal tight-monetary policy mix affects the composition of output by encouraging imports of foreign goods and discouraging U.S. exports, as was experienced during the 1980s.
c. there was not a link between the rising government budgetary deficit and the rising trade deficit during the mid-1980s.
d. budget deficits and trade deficits should not be a source of concern
B
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Other things constant, the more profitable a corporation is,
a. the lower the value of its shares on the stock market and the lower the interest rate that would have to be paid on new bond issues b. the higher the value of its shares on the stock market and the higher the interest rate it would have to pay on new bond issues c. the higher the value of its shares on the stock market and the lower the interest rate that would have to be paid on new bond issues d. the lower the value of its shares on the stock market and the higher the interest rate that would have to be paid on new bond issues e. the lower the interest rate that would have to be paid on new bond issues; the value of its shares on the stock market does not vary
Goods that are rival in consumption and excludable are:
A. a common resource. B. a private good. C. a public good. D. an artificially scarce good.
In labor markets, a change in the wage rate has both an income and a substitution effect. An increase in wages causes an increase in real income but at the same time it increases the relative price of leisure for the worker. If an increase in wage rate causes an individual to work less, _____
a. the income effect dominates the substitution effect b. the substitution effect dominates the income effect c. the substitution and income effects cancel each other out d. then leisure will be referred to as an inferior good e. the increase in wage rates will cause an increase in the supply of labor
Which of the following pairs of equations describes the supply and demand curves given in the accompanying demand and supply tables?PriceQuantity SuppliedQuantity Demanded$20040$251040$302040$353040$404040$455040
A. Qs = 2P - 40; Qd = 40, respectively B. Qs = P - 20; Qd = 40, respectively C. Qs = P - 40; Qd = 40P, respectively D. cannot be determined