Which one of the following is not a major factor that contributed to large trade deficits in the United States in the period 2002-2007?
A. A declining saving rate coupled with a rising investment rate in the U.S.
B. A U.S. economy growing faster than its trading partners
C. Large trade deficits with OPEC economies
D. Flexible exchange rate between the U.S. dollar and the Chinese yuan
D. Flexible exchange rate between the U.S. dollar and the Chinese yuan
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Extremely cold winter weather has destroyed oranges in Florida. The freeze has caused
A) scarcity because there are less oranges now than people want. B) scarcity because people have to switch to other types of citrus fruits. C) a shortage because people cannot obtain as many oranges as they wish to buy at the pre-freeze price. D) a shortage because the orange growers will have less income.
In the long run,
a. the natural rate of unemployment depends primarily on the level of aggregate demand. b. inflation depends primarily upon the money supply growth rate. c. there is a tradeoff between the inflation rate and the natural rate of unemployment. d. All of the above are correct.
Diminishing marginal product of labor occurs when adding another unit of labor
A) decreases output. B) changes output by an amount smaller than the output added by the previous unit of labor. C) increases output by an amount larger than the output added by the previous unit of labor. D) decreases output by an amount smaller than the output added by the previous unit of labor.
When the United States acquires assets abroad, it is in essence borrowing money, and foreign debts to the United States decrease.
Answer the following statement true (T) or false (F)