Because the U.S. traditionally gives more foreign aid than it receives, the U.S. traditionally has a negative value for
A) the capital account balance.
B) the trade balance.
C) investment income.
D) net transfers received.
E) all of the above
D
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In the extreme case of a complete crowding-out effect
A) an increase in interest rates will stimulate investment spending. B) an increase in government spending will not increase aggregate demand. C) an increase in tax rates will stimulate work effort. D) an increase in government spending will stimulate investment spending.
Explain why some economists claim that the persistence of high unemployment rates during the recovery from the recession of 2007–2009 is evidence of "hysteresis."
What will be an ideal response?
"In the corn market, demand often exceeds supply and supply sometimes exceeds demand." "The price of corn rises and falls in response to changes in supply and demand." In which of these two statements are the terms demand and supply being used correctly?
A. In neither statement B. In both statements C. In the second statement D. In the first statement
Suppose the Fed implements a monetary expansion that is at least partially unexpected. Explain what effect this will have on stock prices
What will be an ideal response?