If a country is experiencing chronic deficits on current account, what must ultimately happen to its exchange rate?
a. it must appreciate
b. it must depreciate
c. the market will shift it from floating to fixed
d. the market will shift it from fixed to floating
e. it will become equalized, that is, the same rate as in other countries
B
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According to the textbook, the percentage of gross domestic product devoted to healthcare between the years 1940 and 2013:
A. increased from 4% to about 6%. B. increased from 4% to more than 40%. C. increased from 4% to more than 17%. D. declined from 4% to less than 2%.
A tax burden falls more heavily on the side of the market that is less elastic
a. True b. False Indicate whether the statement is true or false
Suppose Suzanne allocates her spending on apples and bananas according to the rational spending rule. If the price of apples is less than the price of bananas, then at Suzanne's optimal consumption bundle, her marginal utility from apples will be:
A. greater than her marginal utility from bananas. B. equal to zero. C. less than her marginal utility from bananas. D. equal to her marginal utility from bananas.
Public goods face the
A) principle of rival consumption. B) free-rider problem. C) law of overproduction. D) exclusion principle.