Historical note: Until 1975, the United States' balance of trade was characterized by
a. moderate deficits
b. huge deficits
c. moderate surpluses
d. high volatility, that is, dramatic ups and downs (positives and negatives)
e. zero balance or equilibrium
C
You might also like to view...
When a regulatory agency uses rate of return regulation, the
A) agency is able to eliminate the deadweight loss. B) firm's managers have an incentive to inflate the firm's costs. C) regulated firm's profit must be maximized for the market to be efficient. D) regulated firm must receive a government subsidy. E) the agency is using a form of marginal cost pricing.
Suppose a manager of a company is told by his staff that marginal productivity has risen above the average productivity over the last six months of operation
What can this manager conclude is happening to the overall average productivity of the company? Explain.
In the fooling model, AD/SAS equilibria to the left of LAS are unstable because ________ nominal wages shift ________
A) falling, AD downward B) falling, SAS downward C) rising, AD upward D) rising, SAS upward
Which of the following provides the strongest argument for young people making regular payments into a retirement program that invests these funds in a diverse set of stocks?
a. The prices of stocks tend to fluctuate more than the prices of bonds. b. Over short periods of time, variation in the real rate of return of stocks is greater than bonds. c. When held over lengthy periods like 30 or 40 years, historically, the rate of return on stocks has been both higher and less variable than that of bonds. d. Lower interest rates will lead to higher bond prices.