A firm produces construction equipment, some of which it exports. Which of the following effects of an increase in the government budget deficit would likely reduce the quantity of equipment it sells?
a. the change in the interest rate and the change in the exchange rate
b. the change in the interest rate but not the change in the exchange rate
c. the change in the exchange rate but not the change in the interest rate
d. neither the change in the interest rate nor the change in the exchange rate
a
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How does a recession in Asia affect U.S. aggregate demand and the U.S. aggregate demand curve?
What will be an ideal response?
A relative price is
A) the number of dollars that must be given up in exchange for the good. B) also called the money price. C) not an opportunity cost. D) the ratio of one price to another price.
Which of the following types of unemployment is the hardest to reduce?
a. Cyclical unemployment b. Structural unemployment c. Voluntary unemployment d. Frictional unemployment e. Seasonal unemployment
When people make a decision to not participate in a program unless they actively enroll for it, program participation is:
A. likely to be higher than if people were automatically enrolled and had to actively opt-out of participating. B. likely to be lower than if people were automatically enrolled and had to actively opt-out of participating. C. likely to be the same as if people were automatically enrolled and had to actively opt-out of participating. D. exclusive, which always makes it more attractive to people.