How does a budget deficit lead to a trade deficit?
A. The trade deficit triggers higher interest rates, which increase the budget deficit.
B. The budget deficit leads to higher interest rates and exchange rates, which shrink net exports.
C. The trade deficit causes lower interest rates, which leads to economic recession and a budget deficit.
D. The budget deficit causes lower exchange rates, which decrease net exports.
Answer: B
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Harry is a computer company executive, earning $200 per hour managing the company and promoting its products. His daughter Quinn is a high school student, earning $6 per hour helping her grandmother on the farm. Harry's computer is broken. He can repair it himself in one hour. Quinn can repair it in 10 hours. Harry's opportunity cost of repairing the computer is lower than Quinn's
a. True b. False Indicate whether the statement is true or false
Which type of compensation method does NOT involve a performance bonus?
A. Profit sharing B. Piece rate C. Revenue sharing D. None of the answers are correct.
The exclusive rights of ownership that allow the use, transfer, and exchange of property are called
A) common property rights. B) private property rights. C) transaction costs. D) social benefits.
Perfectly competitive firms maximize their profit by producing the output level where P = MR = AVC.
Answer the following statement true (T) or false (F)