A utility-maximizing consumer would never purchase a good if the:
a. MU/P is positive.
b. marginal utility is positive.
c. marginal utility is negative.
d. none of these is correct.
c
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The current account balance is equal to
A) exports - imports - net interest + net transfers. B) exports - imports + net interest + net transfers. C) imports - exports + net interest - net transfers. D) exports - imports - net interest - net transfers. E) imports - exports + net interest + net transfers.
The United States first became a creditor nation in the year _______.
Fill in the blank(s) with the appropriate word(s).
The existence of the J-curve suggests that a real depreciation will cause
A) an initial increase in net exports. B) an initial increase in economic activity. C) a final reduction in net exports. D) an initial reduction in the demand for domestic goods.
In the above figure, if initial equilibrium is at point A and if there is an unanticipated increase in aggregate demand from AD1 to AD2, then
A. in the short run real output will remain at Y1. B. in the long run real output will increase above Y1. C. in the short run real output will increase above Y1, but in the long run it will return to Y1. D. real output will increase above Y1 in both the short run and in the long run.