A current account deficit can occur if ________, all else equal
A) net national savings equals zero B) net factor income from abroad equals zero
C) net exports are negative D) net investment income is negative
C
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The income elasticity for most foods is positive but less than 1
Indicate whether the statement is true or false
Of Social Security benefits and federal income tax brackets, which is indexed?
a. Both are indexed. b. Only Social Security benefits are indexed. c. Only federal income tax brackets are indexed. d. Neither is indexed.
In the open-economy macroeconomic model, the market for loanable funds identity can be written as
a. S = NCO - I b. S = NCO c. S = I - NCO d. S = I + NCO
What significance does growing economic interdependence have for a country like the United States?
A. Exports and imports decrease as a share of national output. B. The U.S. agricultural sector increasingly benefits from free trade. C. International political and economic events have an increasingly important effect on energy prices in the United States. D. Foreign competition increasingly affects profits of domestic firms.