In an open economy, increases in government spending can crowd out consumption, investment, or net exports
Indicate whether the statement is true or false
TRUE
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The International Monetary Fund was created to facilitate the borrowing and lending of dollar reserves to central banks of the countries participating in the Bretton Wood System
Indicate whether the statement is true or false
Supply can shift due to changes in price
a. True b. False Indicate whether the statement is true or false
Suppose that a business incurred implicit costs of $500,000 and explicit costs of $5 million in a specific year. If the firm sold 100,000 units of its output at $50 per unit, its accounting:
A. profits were $100,000 and its economic profits were zero. B. profits were zero and its economic losses were $500,000. C. losses were $500,000 and its economic losses were zero. D. profits were $500,000 and its economic profits were $1 million.
A lower price for automobiles would reduce the externalities from automobiles.
Answer the following statement true (T) or false (F)