Refer to the tables. Which of the following would be feasible terms for trade between Latalia and Trombonia?
Answer the question on the basis of the following production possibilities tables for two countries, Latalia and Trombonia:
A. 1 ton of beans for 1 ton of pork
B. 2 tons of beans for 1 ton of pork
C. 6 tons of beans for 1 ton of pork
D. 4 tons of beans for 1 ton of pork
D. 4 tons of beans for 1 ton of pork
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An autonomous depreciation of the U.S. dollar makes American goods ________ relative to foreign goods and results in a ________ in U.S. net exports, everything else held constant
A) cheaper; decline B) cheaper; rise C) more expensive; decline D) more expensive; rise
Net exports equal imports minus exports
a. True b. False Indicate whether the statement is true or false
Why is inflation considered a problem?
a. Firms gain too much economic power. b. It is always very high when it exists. c. People prefer falling prices. d. It is costly for society. e. Government gains too much economic power..
If a nation's currency depreciates, this will tend to
a. shift a nation's balance of trade toward a deficit. b. cause a deficit in the government's budget (expenditures - revenues). c. make foreign goods more expensive for the nation's citizens. d. make foreign goods cheaper for the nation's citizens.