Use the following diagram to answer the next question.
We observe that the economy has moved from NX1 to NX3. This could have happened because ________.
A. imports decreased
B. exports increased by more than imports
C. exports increased by less than imports
D. exports increased
Answer: C
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A utility-maximizing consumer will
a. consume at a point on her budget line b. consume each good until its marginal utility is zero c. adjust her consumption pattern so that the marginal utilities of all goods are equal d. consume more of a good only if its price rises e. stop consuming any good whose price rises
The Fed can determine how the money demand curve has shifted by
a. studying interest rate changes b. looking at the number of new loans c. studying unemployment compensation claims d. experimenting with changes in credit conditions e. checking the size of the federal budget deficit
The rationing mechanisms that develop under binding price ceilings are usually inefficient
a. True b. False Indicate whether the statement is true or false
While on the gold standard prior to 1914, an ounce of gold could be redeemed for ________ , after World War II it could be redeemed for ________
a. $4; $20 b. $4; $5 c. $20; $35 d. $4; $35