Which of the following transactions will decrease the U.S. current account deficit?
A. A U.S. corporation builds a new factory in Seoul, South Korea.
B. Dutch tourists visiting Los Angeles.
C. U.S. department stores buy shoes from Italy.
D. American firms invest in Tokyo real estate.
B. Dutch tourists visiting Los Angeles.
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Use the LR curve to show what happens to output, the real interest rate, and the price level in the short run and in the long run if the government provides a tax credit to people who buy a new home, which leads to an increase in new housing
investment.
Cartels are difficult to maintain because
a. antitrust laws are difficult to enforce. b. cartel agreements are conducive to monopoly outcomes. c. there is always tension between cooperation and self-interest in a cartel. d. firms pay little attention to the decision made by other firms.
Nancy and Sheila are both loan officers who started working for their current employer during the same year, graduated from the same university with bachelors' degrees in economics, and achieved similar performance reviews. Nancy earned a master's degree last year. If Nancy earns a higher annual salary than Sheila because she has more formal education, the employer is
a. basing pay on experience. b. paying efficiency wages. c. practicing discrimination. d. rewarding increases in human capital.
Competition for votes between two political parties will cause those parties to
A) produce quite different policy proposals. B) have very similar policy proposals. C) find ways to clearly distinguish themselves in order to give voters a clear choice. D) a and c E) none of the above