Figure 19-3
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Of the graphs in Figure 19-3, where the dotted line shows the actual exchange rate, which one shows a country with an overvalued currency and a balance of trade deficit?
A. 1
B. 2
C. 3
D. 4
Answer: A
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Which of the following is TRUE about how trade deficits and government budget deficits are related?
A) The government budget deficit leads to higher interest rates that will lead to a trade deficit. B) The government budget deficit leads to lower interest rates that will lead to a lower trade deficit. C) The trade deficit leads to a reduction in investment that leads to a government budget deficit. D) The trade deficit leads to a decline in imports relative to exports that leads to a government budget deficit.
Consumers have been buying fewer CDs as downloadable music has become easier to purchase and use. We would represent this as
A) a leftward shift of the demand curve for CDs. B) a rightward shift of the demand curve for CDs. C) a change in the price of CDs. D) a leftward shift of the supply curve for downloadable music.
According to the U.S. Department of Commerce, a group of two or more persons living together who are related by birth, marriage, or adoption is known as a
a. household. b. family. c. Lorenz unit. d. quin tile.
A line that rises from left to right has a positive slope.
Answer the following statement true (T) or false (F)