Despite the elimination of the federal budget deficit in the late 1990s, the trade deficit increased due to

A. increased household saving.
B. decreased household saving.
C. a depreciation of the dollar.
D. an increase in inflation rates.


Answer: B

Economics

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In a general equilibrium model, a tax on a single factor in its use only in a particular sector can affect returns to all factors in all sectors.

A. True B. False C. Uncertain

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Based on this market producer surplus graph, which of the following production levels would create the greatest market producer surplus at the market price of $5 per unit?


a. 10,000
b. 25,000
c. 49,000
d. 51,000

Economics

Financing expansionary fiscal policy by increasing the deficit does not generally affect interest rates.

Answer the following statement true (T) or false (F)

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At the start of a cost-push inflation,

What will be an ideal response?

Economics