If foreigners become unwilling to hold U.S. assets, the U.S. trade balance will:
A. go further into surplus.
B. go further into deficit.
C. experience smaller surpluses.
D. experience smaller deficits.
Answer: D
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Refer to Figure 3-8. The graph in this figure illustrates an initial competitive equilibrium in the market for apples at the intersection of D2 and S1 (point C). Which of the following changes would cause the equilibrium to change to point B?
A) a positive change in the technology used to produce apples and decrease in the price of oranges, a substitute for apples B) an increase in the wages of apple workers and an increase in the price of oranges, a substitute for apples C) an increase in the number of apple producers and a decrease in the number of apple trees as a result of disease D) a decrease in the wages of apple workers and an increase in the price of oranges, a substitute for apples
When will stabilization policy be most effective in combating recessions?
a. when AS is flat b. when AS is very steep c. when AS has a moderately upward slope d. when AS has a moderately downward slope.
The quantity theory of money implies that if output and velocity are constant, then a 50 percent increase in the money supply would lead to less than a 50 percent increase in the price level
a. True b. False Indicate whether the statement is true or false
_______________________: A group of theories which attempt to explain the voting behaviors of voters & politicians
Fill in the blank(s) with the appropriate word(s).