In January 2013 certain tax rates increased, which were predicted to increase the federal government's tax revenue. An increase in tax revenue __________ the government's budget deficit and over time thereby __________ the amount of government debt.
a) increases; decreases
b) decreases; decreases
c) decreases; increases
d) increases; increases
b) decreases; decreases
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Suppose a country's net exports equal zero. Which of the following will happen if the volume of imports increases without an increase in the volume of exports?
A) The country will experience a budget surplus. B) The country will experience a budget deficit. C) The country will experience a trade surplus. D) The country will experience a trade deficit.
For a monopoly, marginal revenue for all units greater than 1 is always:
A. less than price because of the price effect. B. more than price because of the price effect. C. more than price because of the quantity effect. D. less than price because of the quantity effect.
Measured as a share of the economy, the size of the trade sector (exports plus imports) of the United States has
a. been increasing since 1980, but it declined during 1960-1980.
b. been relatively constant during the last four decades.
c. increased by about 10 percent during the last four decades.
d. approximately doubled since 1980 and tripled since 1960.
The asset approach basically looks at as the fundamental variable affecting exchange rates.
a. interest rates; short-run b. interest rates; long-run c. the price level; short-run d. the price level; long-run