An increase in the domestic interest rate relative to other interest rates should
A) increase net exports. B) increase investment spending.
C) decrease consumption spending. D) increase government spending.
C
You might also like to view...
Medicaid is the most expensive program that the government runs that provides benefits to the poor.
A. True B. False C. Uncertain
If there are big gains to be had from specialization and trade, countries generally don’t produce one good because:
A. national economies often are perfectly free markets. B. there is perfectly free trade between national economies. C. specialization is generally limited by trade agreements. D. All of these are true.
If China has an absolute advantage over Canada in producing both rice and tires, then
a. China should produce both rice and tire and Canada should produce both rice and tires b. there are no benefits possible to China from specialization c. Canada should produce tires and China should produce rice d. China should produce tires and Canada should produce rice e. more information is needed to tell whether China or Canada should specialize
What are the four types of industry structures? Compare and contrast them with the number of firms in the industry, whether firms produce homogeneous or heterogeneous products, whether there are economic profits in long-run equilibrium, and how frequently the model appears in the real world