What is the "good news" and the "bad news" about a higher value of the U.S. dollar?
What will be an ideal response?
The "good news" about a higher value of the dollar is that a higher value will make it less expensive for U.S. residents to buy foreign goods. The "bad news" is that U.S. goods become more expensive to residents of other countries, so they buy less of them and U.S. exports decrease.
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In a saving—investment diagram for a small open economy
A) the saving curve is vertical at some fixed level of output. B) the saving curve is horizontal at some fixed interest rate. C) the real interest rate is fixed at the world real interest rate. D) equilibrium requires that Sd = Id.
At an interest rate of 8.25% compounded annually, what is the present discounted value of $2,000 to be received 2 years from now?
A. $1670.00 B. $1706.77 C. $1716.74 D. $1835.00
Only governments provide public goods
a. True b. False Indicate whether the statement is true or false
The Laffer curve suggests that if tax rates get too _____, the government's tax revenues will _____.
A. high; fall B. high; rise C. low; fall D. low; rise