Who is most likely to benefit when the dollar appreciates against the euro?
A. U.S. buyers of foreign goods
B. Foreign buyers of U.S. goods
C. U.S. buyers of U.S. goods
D. Foreign buyers of foreign goods
A. U.S. buyers of foreign goods
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If a country's national government wants to stimulate spending in the economy, it should:
A) decrease taxes and increase government spending. B) increase taxes and decrease government spending. C) increase taxes and government spending. D) decrease taxes and government spending.
The risk premium of corporate bonds typically increases
A) when the average price of corporate bonds increase. B) during a recession. C) when the interest rates on corporate bonds decreases. D) when the risk premium on treasury bonds increases.
A recessionary gap is the amount by which aggregate expenditures ____ the amount required to achieve full-employment equilibrium GDP
a. exceed b. equal c. fall short of d. are greater than
Most natural monopolies are regulated at some level by a government because:
a. an unregulated natural monopolist would cause the problem of capital outflow. b. an unregulated natural monopolist would produce only for government bureaucrats. c. an unregulated natural monopolist would charge an inefficiently low price in the market. d. an unregulated natural monopolist would charge an inefficiently high price in the market. e. an unregulated natural monopolist would incur losses.