Suppose that the U.S. government gives foreign aid to Turkey. This transaction would directly
A) increase the U.S. current account.
B) decrease the U.S. current account.
C) increase the U.S. capital and financial account.
D) decrease the U.S. capital and financial account.
B
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If technological change is "neutral," then
A) output per worker declines, output per unit of capital increases. B) "effective labor input" increases, output per unit of capital declines. C) output per worker increases, output per unit of capital is constant. D) Both output per worker and output per unit of capital change.
Assume that the economy is initially at its equilibrium level of GDP. What will happen to the equilibrium level of GDP if planned investment decreases by 20, government spending increases by 30, and taxes increase by 10?
A) GDP will decrease by 60 B) GDP will decrease by 10 C) there will be no change in GDP D) GDP will increase by 10
In an economy with no government and no international trade, consumption expenditures will be less than the total value of goods and services when
A. saving is zero. B. investment is zero. C. people barter rather than use money in making exchanges. D. people save some of their income.
By definition, imports are
a. people who work in foreign countries. b. goods in which a country has an absolute advantage. c. limits placed on the quantity of goods leaving a country. d. goods produced abroad and sold domestically.