Suppose a German-produced car becomes very popular in the United States. This would tend to
a. affect the U.S. balance of payments but not the balance of trade.
b. reduce any existing balance of trade deficit in the United States.
c. increase a balance of trade surplus in the United States.
d. increase a balance of trade deficit in the United States.
D
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Representative democracy makes no sense from an economic point of view
a. True b. False
The rules-based monetary policy that some nonactivists have proposed to maintain price stability reads this way:
A) The annual growth rate in the money supply will equal the average annual growth rate in Real GDP minus the growth rate in velocity. B) The annual growth rate in the money supply will equal the average annual growth rate in Real GDP plus the growth rate in velocity. C) The annual growth rate in the money supply will equal the average annual growth rate in Real GDP divided by the growth rate in velocity. D) The annual growth rate in the money supply will equal the average annual growth rate in Real GDP times the growth rate in velocity.
Use the above table. Based on the information in the table, jam is a(n)
A. necessary good. B. inferior good. C. negative good. D. normal good.
The cross-price elasticity of demand between good X and good Y is 2.75. Given this information, which of the following statements is true?
A. Goods X and Y are complements. B. The demand for goods X and Y is inelastic. C. Goods X and Y are substitutes. D. The demand for goods X and Y is income inelastic.