Which of the following is TRUE of the relationship between U.S. trade deficits and federal government budget deficits?
A. Increases in the budget deficit tend to be associated with reductions in the trade deficit.
B. Increases in the budget deficit are always associated with reductions in the trade deficit.
C. Increases in the budget deficit are always associated with increases in the trade deficit.
D. Increases in the budget deficit tend to be associated with increases in the trade deficit.
Answer: D
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If grades are to be a successful signal to potential employers of a student's qualities, then higher grades must be
A) easier for high-productivity students to earn than for low-productivity students to earn. B) easier for low-productivity students to earn than for high-productivity students to earn. C) easy for employers to check. D) used for all future promotions within the firm. E) often referred to in the hiring process.
The exchange rate changed from € 2.5/ $ to € 2.0/ $. Therefore:
a. The euro appreciated by 20% and the dollar depreciated by 20%. b. The euro depreciated by 20% and the dollar appreciated by 20%. c. The euro appreciated by 25% and the dollar depreciated by 25%. d. The euro depreciated by 25% and the dollar appreciated by 25%. e. The euro appreciated by 25% and the dollar depreciated by 20%.
The short run is defined as that period of time during which
A. all inputs are fixed. B. all inputs are variable. C. labor is counted as a fixed input. D. one or more inputs cannot be freely varied.
Which of the following is true of the paradox of thrift?
a) The paradox of thrift occurs when investment is not related to income. b) The paradox of thrift occurs when households intend to save less. c) The paradox of thrift causes consumers to save less. d) The paradox of thrift occurs when households intend to consume more