A higher income tends to make demand for a given good ______ elastic.
Fill in the blank(s) with the appropriate word(s).
Answer: less
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In the foreign exchange market, an increase in the world demand for U.S. exports shifts the
A) demand curve for U.S. dollars rightward. B) demand curve for U.S. dollars leftward. C) supply curve for U.S. dollars leftward. D) supply curve for U.S. dollars rightward.
How does a budget deficit lead to a trade deficit?
a. The trade deficit triggers higher interest rates, which increase the budget deficit. b. The budget deficit leads to higher interest rates and exchange rates, which shrink net exports. c. The trade deficit causes lower interest rates, which leads to economic recession and a budget deficit. d. The budget deficit causes lower exchange rates, which decrease net exports.
The assumptions that form the basis of any economic model are referred to as:
A. theorems. B. objectives. C. building blocks. D. precepts.
Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________, 
A. Rising; B; C B. Falling; A; C C. Falling; A; B D. Rising; A; C