A trade deficit refers to a situation where:
A. Government spending (including transfer payments) exceeds tax revenues
B. A nation's purchases from other nations are less than its sales to other nations
C. Assets are less than liabilities
D. Exports are less than imports
D. Exports are less than imports
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A market
a. is often a physical place b. facilitates exchanges between buyers and sellers c. typically involves monetary transactions d. might not have well-defined geographical limits e. all of the above
After September 11, 2001, President George W. Bush believed in the need for a fiscal stimulus. The proper fiscal policy to reflect this could include a(n)
a. increase in taxes. b. reduction in transfer payments. c. increase in government purchases. d. All of the above are correct.
Suppose the nominal interest rate in Brazil is 40 percent and the expected inflation rate is 150 percent. The real interest rate is:
A. 1-90 percent. B. 190 percent. C. 1-10 percent. D. 110 percent.
If the demand curve for a product is vertical, then
A) the demand for the product is elastic. B) the demand for the product is perfectly elastic. C) only a certain amount of the product will be consumed regardless of price. D) the price elasticity of the product approaches zero.