If the price level increases in the United States relative to foreign countries, then American consumers will purchase more foreign goods and fewer U.S. goods. This statement describes:

A. the output effect.
B. the foreign purchases effect.
C. the real-balances effect.
D. the shift-of-spending effect.


B. the foreign purchases effect.

Economics

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In a closed economy, public saving plus private saving is equal to

A) the budget deficit. B) the budget surplus. C) taxes minus transfers. D) investment.

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What are some of the explanations offered for why the U.S. economy experienced a period of relative stability from 1950-2007?

What will be an ideal response?

Economics

Autarky is also known as interdependence among foreigners

Indicate whether the statement is true or false

Economics

An increase in investment can lead to a greater increase in aggregate demand if the value of the spending multiplier is _____

Fill in the blank(s) with the appropriate word(s).

Economics