The excess supply of dollars created by a balance-of-trade deficit must be offset by outflows of capital.
Answer the following statement true (T) or false (F)
False
The excess supply of dollars created by a balance-of-trade deficit must be offset by inflows of capital.
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Induced expenditures are defined as that part of
A) autonomous expenditure that responds to changes in real GDP. B) real GDP that does not respond to changes in aggregate expenditure. C) aggregate expenditure that responds to changes in real GDP. D) aggregate expenditure that does not respond to changes in real GDP. E) autonomous expenditure that does not respond to changes in real GDP.
Which of the following can prevent markets from reaching the efficient level of production? I. a monopoly II. taxes III. the product is a public good
A) I and II B) II C) II and III D) I, II and III
This year a country loaned more to the rest of the world than it borrowed from the rest of the world. In addition, the country has invested more in the rest of the world than other countries have invested in it
The country is currently a ________ and also a ________. A) net lender; creditor nation B) net borrower; creditor nation C) net borrower; debtor nation D) debtor nation; net lender
The most appropriate countercyclical policy, or stabilization policy, in times of unemployment, according to classical economists, is for the government to:
a. increase the minimum wage. b. impose wage and price controls. c. stimulate aggregate demand. d. cut taxes. e. do nothing.