The current account deficits incurred by the United States in the 1980s were caused, in the opinion of many economists, by
A) federal budget deficits.
B) a sharp decline in private saving.
C) "flight to quality" as foreign investors favored U.S. investments.
D) Both B and C are correct.
A
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In game theory, the three key characteristics of a game are
A) rules, strategies, and payoffs. B) risks, rewards, and penalties. C) winners, losers, and rules. D) rules, regulations, and payoffs.
When a demand curve is perfectly elastic:
A) marginal revenue = average revenue = price. B) marginal revenue > average revenue = price. C) marginal revenue < average revenue = price. D) marginal revenue > average revenue > price.
Crowding out refers to the situation in which:
a. borrowing by the federal government raises interest rates and causes firms to invest less. b. foreigners sell their bonds and purchase U.S. goods and services. c. borrowing by the federal government causes state and local governments to lower their taxes. d. increased federal taxes to balance the budget causes interest rates to increase and consumer credit decreases.
Which national income account should be examined to discover trends in the after-tax income that people have to save and spend?