If U.S. prices increase relative to the rest of the world, we would expect:
A. net exports to be unaffected.
B. net exports to increase.
C. net exports to decrease.
D. government spending to increase.
Answer: C
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The table above shows how many blouses Katie and Kim will purchase at different prices for a blouse. In the figure, label the axes and put the price on the y-axis and the quantity of blouses on the x-axis. Plot the data for Katie in the figure
Then, plot the data for Kim in the figure.
The difference between sensitivity analysis and scenario analysis is
A) sensitivity analysis is a method for evaluating risk while scenario analysis is not. B) sensitivity analysis is based on regression analysis while scenario analysis is not. C) sensitivity analysis examines the impact on the overall results of a change in one variable while scenario analysis examines the impacts on overall results of changes in several variables at the same time. D) None of the above
If Billie buys a smoothie at the corner cafe, which of the following best relates this transaction to the circular flow diagram?
a. Goods flow from the product market, and money flows from households. b. Resources (land, labor, capital) flow from households, and money flows from businesses. c. Income flows from the factor market, and goods flow into the factor market. d. Resources flow into households, and back into the goods and services market.
Determinants of the supply of loanable funds are all except:
A. expectations of future economic conditions. B. rate of return on investment. C. wealth. D. social welfare policies.