Why are most of the U.S. dollars held outside of the United States?
What will be an ideal response?
Concern about high inflation eroding the value of their own currency causes many people in foreign countries to hold U.S. dollars as a hedge against inflation risk.
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A White House proposal to lower business taxes by increasing tax deductions is an example of
A) progressive taxation. B) contractionary fiscal policy. C) automatic stabilization. D) expansionary fiscal policy.
Producer surplus:
a. measures the value between the actual selling price of a product and the price at which sellers are willing to sell the product. b. is illustrated by the area above the supply curve and below the market price. c. is maximized in market equilibrium. d. all of these.
The marginal productivity theory of distribution holds that
a. each factor is paid what it deserves. b. the owner of each factor is paid the amount that the factor contributes to earnings. c. each factor's income depends on how hard it works. d. each factor receives an equal share of the revenue from production.
Curve XY represents _____________.
A. short-run aggregate demand
B. long-run aggregate demand
C. short-run aggregate supply
D. long-run aggregate supply