If Egypt has a chronic unfavorable balance of trade, it will eventually lead to
a. the Egyptian government's decision to appreciate its currency (the pound)
b. the Egyptian government's decision to devalue its currency (the pound)
c. the Egyptian government's policy to create a favorable balance of payments
d. the Egyptian government's policy to create a favorable balance on current account
e. a negative balance of payments
B
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Pirates have been intensely attacking ships off the shore of Somalia this year. Boat owners have reportedly coughed up more than $30 million in ransom and insurance premiums have shot up
The pirate activity and increase in premiums means that the expected wealth of boat owners who sail near Somalia is ________. A) decreasing B) increasing C) staying the same D) decreasing only if they have insurance
The Navigation Acts required that colonists use England as an "entrepot.". This resulted in
a. additional shipping and handling costs for colonial trade. b. increased prices for colonial imports. c. a disproportionately large economic burden on Southern exports. d. an estimated total economic burden of less than 1 percent of colonial income. e. All of the above.
The value of the expenditure multiplier depends on the marginal propensity to consume
a. True b. False Indicate whether the statement is true or false
An increase in the unemployment rate would affect tax receipts and government expenditures by
A. reducing tax receipts and expenditures. B. increasing tax receipts and expenditures. C. reducing tax receipts and raising expenditures. D. raising tax receipts and reducing expenditures.