Refer to the information. This nation is incurring:
Answer the question on the basis of the following information for a private open economy. The letters Y, C, I g , X, and M stand for GDP, consumption, gross investment,exports, and imports respectively. Figures are in billions of dollars.
A. a trade surplus.
B. balance in its international trade.
C. a trade deficit.
D. unemployment.
C. a trade deficit.
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Monetarists' preference for reduced-form models is based on their belief that
A) reverse causation is a problem. B) structural models may understate money's effect on economic activity. C) money supply changes are always endogenous. D) monetary policy affects only investment spending.
People (and all resources):
a. tend to specialize in those activities in which their opportunity costs are minimized. b. tend to specialize in those activities in which their opportunity costs are maximized. c. never consider opportunity costs before specializing in a particular activity. d. consider only direct costs while choosing to specialize in a particular activity. e. do not act in their own self-interest but specialize in those activities which benefit others.
A fall in the domestic interest rate leads to capital
a. outflows and exchange rate appreciation. b. outflows and exchange rate depreciation. c. inflows and exchange rate depreciation. d. inflows and exchange rate appreciation.
Jerry sells cherry sno-cones along the boardwalk in New Jersey. During the summer this is a perfectly competitive business, and Jerry faces a perfectly elastic demand curve. If he wants to try to increase revenues he should
A. keep the price the same but produce more to increase sales. B. raise the price of his sno-cones to make more per sale. C. lower the price of his sno-cones to try to sell more. D. do nothing; there is nothing he can do to increase revenue.