When an American household purchases a bottle of Italian wine for $100,
a. U.S. consumption does not change, U.S. net exports decrease by $100, and U.S. GDP decreases by $100.
b. U.S. consumption does not change, U.S. net exports increase by $100, and U.S. GDP increases by $100.
c. U.S. consumption increases by $100, U.S. net exports decrease by $100, and U.S. GDP does not change.
d. U.S. consumption increases by $100, U.S. net exports do not change, and U.S. GDP increases by $100.
c
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The loanable funds market is also referred to as the:
A) spot market. B) credit market. C) exchange market. D) capital market.
Using a graph, analyze the Great Depression from a Keynesian perspective. What happened to unemployment?
What will be an ideal response?
Suppose the government imposes a price support that is above the equilibrium price. As a result,
A) total revenue increases. B) consumer surplus increases. C) the marginal cost of the last unit produced decreases. D) the government has effectively imposed a price ceiling. E) the subsidy the government pays decreases.
If a bank has $100,000 of checkable deposits, a required reserve ratio of 20 percent, and it holds $40,000 in reserves, then the maximum deposit outflow it can sustain without altering its balance sheet is
A) $30,000. B) $25,000. C) $20,000. D) $10,000.