Under flexible exchange rate, the response of an economy to a temporary fall in foreign demand for its exports is
A) the currency appreciates, and output falls.
B) the currency depreciates, and output falls.
C) the currency depreciates, and output increases.
D) the currency depreciates, and output remains constant.
E) the currency appreciates, and output increases.
B
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When tax revenue ________ outlays is negative, then the government has a budget ________
A) minus; surplus B) divided by; surplus C) minus; deficit D) plus; deficit E) plus; surplus
If salt has a ________, then ________ pay most of any tax levied on salt
A) high elasticity of supply; sellers B) low elasticity of demand; buyers C) high elasticity of demand; buyers D) low elasticity of supply; buyers
Government ownership of industries is quite uncommon
a. True b. False
Which of the following is included in the investment component of GDP?
a. spending on new residential construction and spending on stocks and bonds b. spending on new residential construction but not spending on stocks and bonds c. spending on stocks and bonds but not spending on new residential construction d. neither spending on stocks and bonds nor spending on new residential construction