Selling exports to foreign purchasers, borrowing money from foreign investors, selling assets to foreign investors, and allowing foreign companies to build factories in the United States are all ways to
A. increase a trade deficit.
B. achieve a trade balance.
C. shift the aggregate demand curve to the right.
D. pay for imports.
Answer: D
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When we say that the financial crisis can be viewed as a balance sheet problem, this is descriptive of
A) banks' assets being greater than their liabilities. B) banks possessing assets that are declining in value, resulting in banks approaching insolvency. C) banks having low leverage ratios. D) banks engaging in regulatory capital arbitrage. E) none of the above
The first commercial introduction of transparent tape is an example of:
A. innovation. B. invention. C. creative destruction. D. diffusion.
The most a consumer is willing to pay for a product is equivalent to the product's ______.
Fill in the blank(s) with the appropriate word(s)
If the inverse demand curve a monopoly faces is p = 100 - 2Q, and MC is constant at 16, then profit maximization is achieved when the monopoly sets price equal to
A) 16. B) 21. C) 25. D) 58.