Last year U.S. net exports of goods and services was negative. This fact means that last year
A) there was an error made when calculating net exports of goods and services for the United States.
B) the value of U.S. exports was greater than the value of U.S. imports.
C) the value of U.S. exports was less than the value of U.S. imports.
D) U.S. consumption expenditure plus investment was less than the value of exports plus the value of imports.
E) U.S. consumption expenditure plus investment plus government expenditures on goods and services was less than the value of exports plus the value of imports.
C
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What are natural experiments?
What will be an ideal response?
The comparative advantage of the South was in
(a) small farms producing for the local market. (b) plantation agriculture producing for export. (c) manufacturing. (d) shipbuilding and trades related to shipbuilding.
When interest rates are near zero and traditional monetary policy is ineffective, the Fed or other central bank may resort to a strategy referred to as quantitative easing. What does this strategy involve?
A) allowing interest rates to rise slowly by providing substantial reserves for as long as is necessary to avoid inflation B) reducing the money supply to raise the interest rates slowly without discouraging spending C) keeping interest rates very low by providing substantial reserves for as long as is necessary to avoid deflation and encourage spending D) increasing the money supply and interest rates at a constant rate to stimulate economic activity
Bogo has just discovered that the marginal revenue product generated by the last worker hired was $125 while the marginal factor cost was $110. What should Bogo do?
A. Leave the level of production unchanged. B. Increase the amount produced. C. Reduce the amount produced. D. Collect more information before making a decision.