As the U.S. price level decreases, expenditures by which of the following will increase?
A. Businesses
B. Consumers
C. The rest of the world
D. All of these will increase their expenditures.
Answer: D
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What makes it extremely difficult for cartels to function effectively without government assistance?
A) Cartel members cannot agree among themselves on the optimum price because all have different costs. B) High prices encourage cartel members to offer discounts, and they attract new entrants to the industry. C) Marginal cost will not equal marginal revenue except at output levels beyond the cartel's capacity. D) Public interest considerations usually require an output greater than the cartel's net revenue maximizing output. E) The hostility of the public to price exploitation makes it difficult for the cartel to defend itself against the consequences of popular hostility.
By opening up to foreign markets two things countries generally experience are:
A. access to a smaller array of new products and saving money through access to cheaper goods. B. access to a smaller array of new products and increase in negative trade outcomes with that nation. C. saving money through access to cheaper goods and finding new customers for their products. D. increase in negative trade outcomes with that nation and finding customers who generally pay less for their products.
The classical economic doctrine held that the normal equilibrium position of the economy was one of
a. rising interest rates. b. some unemployment. c. rising prices. d. full employment.
A financial account surplus implies that a countries assets are falling or its liabilities are rising
a. true b. false