If net exports increases, but neither government expenditure nor net taxes change, saving must increase
Indicate whether the statement is true or false
TRUE
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Marginal utility theory concludes that a decrease in the price of a good increases the quantity demanded and
A) increases the demand for substitutes. B) decreases the demand for complements. C) increases the total expenditure on the good. D) increases total utility.
When a firm’s fixed costs increase it should raise its prices in order to maximize profits.
Answer the following statement true (T) or false (F)
A reduction in the required reserve ratio would cause the interest rates to
A. increase only if the level of investment is low relative to historic levels. B. decrease. C. increase. D. increase only if the level of unemployment is high.
Which of the following makes the U.S. market more attractive to foreign buyers?
a. depreciation of the dollar b. contractionary monetary policy by the Fed c. increase in price of U.S. goods d. increase in U.S. interest rates