For the federal deficit to be lowered
A) the federal government must increase its spending and increase net exports.
B) the federal government's expenditures must be lower than its tax revenue.
C) the Federal Reserve must raise interest rates and lower the required reserve ratio.
D) the Federal Reserve must reduce the money supply.
Answer: B
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The "Big Mac Theory of Exchange Rates" tests the accuracy of the purchasing power parity theory. In July 2015, the Economist reported that the average price of a Big Mac in the U.S. was $4.79
In Sweden, the average price of a Big Mac at that time was 43.7 kronor. What is the "implied exchange rate" between Swedish kronor and U.S. dollars? A) 0.11 kronor per dollar B) 1.90 kronor per dollar C) 9.12 kronor per dollar D) 46.2 kronor per dollar
Sun City’s public bus line has been operating at a deficit. The city decides to raise the fare from 50 cents to 75 cents, anticipating enough additional revenue to cover the deficit. What assumption is the city making about price elasticity?
What will be an ideal response?
John and Miguel are fishermen. When they go fishing, John consistently catches 2 or 3 fish per hour, while Miguel consistently catches 5 or 6 fish per hour. Miguel's __________ exceeds that of John
Fill in the blank(s) with correct word
If the demand for olives falls when the price of cheese falls, then we know that cheese and olives are:
A. normal goods. B. substitutes. C. complements. D. inferior goods.