The balance on the current account ____________
a. can never be negative
b. can be positive or negative
c. must always be one
d. must always be zero
e. is an itemized account of a nation's foreign economic transactions
B
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As the economy enters an expansion so that people's expected future incomes rise, there will be
A) a decrease in the nominal interest rate. B) a leftward shift in the supply of loanable funds curve. C) an increase in the supply of loanable funds. D) a leftward shift in the demand for loanable funds curve. E) None of the above answers is correct.
Explain the basic distinction between microeconomic analysis and macroeconomic analysis. Describe the types of issues that each branch of analysis focuses on
What will be an ideal response?
The most-favored-nation clause in U.S. trade agreements:
A. Gives special favors to Canada and Mexico because these nations border the United Sates B. Provides a comparative advantage in trade to those nations that have higher domestic opportunity costs in producing a product C. Means that lower tariffs negotiated with one nation with most-favored-nation status also apply to other nations with most-favored-nation status D. Offers favorable treatment to less developed nations to help improve economic growth in their economies
Real GDP per person in the United States was $9,864 in 1950. Over the next 48 years, it grew at a compound annual rate of 2.0%. If, instead, real GDP per person had grown at an average compound annual rate 2.5%, then real GDP per capita in the United States in 1998 would have been approximately ________ larger.
A. $12,530 B. $25,520 C. $6,751 D. $2,370