Suppose the US is in a recession while foreign countries that trade with the US are not. How will this affect the US?
A. US imports will fall, US exports will rise, and AD will fall
B. US imports will fall, US exports will rise, and AD will rise
C. US imports will rise, US exports will fall, and AD will fall
D. US imports will fall, US exports will fall, and AD will remain unchanged
Ans: B. US imports will fall, US exports will rise, and AD will rise
You might also like to view...
Capital gains are the profit earned from the sale of
A) stocks. B) real estate. C) bonds. D) all of the above.
A vector autoregression
A) is the ADL model with an AR process in the error term. B) is the same as a univariate autoregression. C) is a set of k time series regressions, in which the regressors are lagged values of all k series. D) involves errors that are autocorrelated but can be written in vector format.
A bundle:
A. is a specific combination of goods and services an individual could consume. B. describes the amount of people that choose a particular combination of goods. C. is a curve describing different combinations of goods and services an individual could choose to consume. D. is when a store sells goods at a discounted price.
Quotas and tariffs provide the same outcome: restriction of international trade and higher prices for consumers
a. True b. False Indicate whether the statement is true or false