In an open economy, there should be a close positive relationship between
a. budget deficits and interest rates.
b. trade deficits and budget deficits.
c. savings and investment.
d. investment and consumption.
e. none of the above.
E
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In a Dutch auction, the starting bid is ________
A) far above any bidder's value for the good being auctioned B) far below any bidder's value for the good being auctioned C) far below the market price of the good D) equal to the market price of the good
The figure above shows the demand for fruit snacks. Which movement reflects an increase in income if fruit snacks are a normal good?
A) from point a to point e B) from point a to point b C) from point a to point c D) from point a to point d
The above table describes the accounts for the country of Pacifica. Using this information, net exports for Pacifica equals
A) $100. B) $900. C) -$100. D) $650.
Subsidies paid to the health care industry for Medicare patients are paid by
A) Congress. B) the Teamsters union. C) current taxes. D) the Federal Reserve.