The large trade deficit that the United States has with China persists in part because:
A. the U.S. economy has grown slowly in recent years.
B. China has fixed its exchange rate to a basket of currencies that includes the dollar, and
has not allowed the yuan to appreciate relative to the U.S. dollar.
C. China has experienced rapid economic growth over the past decade.
D. China has recently imposed or increased tariffs on most goods imported from the United
States.
B. China has fixed its exchange rate to a basket of currencies that includes the dollar, and
has not allowed the yuan to appreciate relative to the U.S. dollar.
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Which of the following ideas are included in classical growth theory?
I. Subsistence real GDP per person II. Growth in real GDP per person is temporary. III. Technological change induces investment. A) I only B) I and II C) II and III D) I, II and III
All of the following actions are potential rule -of-reason violations except which one?
A) an exclusive dealings contract with a customer B) an agreement with a competitor firm to not sell to a particular customer C) an agreement with a customer about the markets in which the customer is allowed to resell the product D) an agreement with a customer about the resale price the customer will charge for the product
Which would most likely increase aggregate supply?
a. A decrease in net exports b. A decrease in the prices of resources c. An increase in the degree of excess capacity d. A decrease in subsidies for businesses
If the average tax rate is less than the marginal tax rate, the tax would be
A. proportional. B. progressive. C. uniform. D. regressive.