If the budget deficit increases, then
a. an increase in the interest rate increases net capital outflow.
b. an increase in the interest rate decreases net capital outflow.
c. a decrease in the interest rate increases net capital outflow.
d. a decrease in the interest rate decreases net capital outflow.
b
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In national income accounting, the value of worn out or obsolete capital is represented by
A) depreciation. B) transfer payments. C) disposable income. D) dividends.
In the 1948-2012 data, the unemployment rate was highest in
A) 2009 B) 1991 C) 1975 D) 1982
The strength of the movement in the short-run aggregate supply schedule, in response to an aggregate demand shock is determined by ________
A) the price elasticity of demand B) the credibility of the monetary authorities C) the underlying state of the economy D) the choice of nominal anchors
Refer to the above figure. In order to stay open in the short run, this firm must
A) earn a positive profit. B) receive a price equal to or greater than the minimum of its average variable cost. C) receive a price exactly equal to its average total cost. D) recover its fixed cost.