LRE. After a decrease in AD, there will immediately be _____
a. inflation and recession
b. deflation and recession
c. inflation and expansion
d. deflation and expansion
Ans: b. deflation and recession
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A decrease in the demand for dollars on the foreign exchange market, all else equal, will result in:
A) appreciation of the U.S. dollar and depreciation of the foreign currency. B) appreciation of the U.S. dollar and appreciation of the foreign currency. C) depreciation of the U.S. dollar and depreciation of the foreign currency. D) depreciation of the U.S. dollar and appreciation of the foreign currency.
The restricted opportunity cause of poverty is due to government destroying incentives
Indicate whether the statement is true or false
A main trading partner with the U.S. is:
A. South Africa. B. Mexico. C. Russia. D. Saudi Arabia.
If Volkswagen (a German-based firm) produces a car in Tennessee and exports it to Mexico, in which country’s GDP will the car be counted?
A. Germany’s, because Volkswagen is a German company B. Mexico, because that is where the car is purchased C. The United States, because that’s where it was built D. Both Mexico and the United States