A government budget deficit
a. increases both net capital outflow and net exports.
b. decreases both net capital outflow and net exports.
c. increases net capital outflow and decreases net exports.
d. decreases net capital outflow and increases net exports.
b
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Personal consumption expenditures include
A) expenditures by households on goods and services produced only in the United States. B) expenditures by households on goods and services produced in the United States and the rest of the world. C) the purchase of new homes. D) the purchase of used goods and new goods.
"Because chips and salsa are complements, an increase in the price of chips will cause the demand for salsa to decrease
This initial shift in demand for chips results in a higher price for chips; this higher price will cause the demand curve for chips to shift to the right." Which of the following correctly comments on this statement? A) The statement is false because one cannot assume that chips and salsa are complements for all consumers. B) The statement is false because a change in the price of chips would not change the demand for chips. C) The statement will be true if consumer tastes for chips and salsa do not change. D) The statement is false because salsa is an inferior good; chips are normal goods.
At the long-run equilibrium output level, a monopolistically competitive firm's average total cost curve
a. lies below the demand curve b. is tangent to (just touches but does not cross) the demand curve c. crosses the demand curve from below d. crosses the demand curve from above e. is at its minimum point
Which of the following observations is true?
A. Tax changes have no impact on the consumption schedule. B. Tax reduction shifts the consumption schedule upward. C. Changes in taxes have a multiplier effect on equilibrium GDP on the supply-side. D. Tax increases increase equilibrium GDP.