Contractionary fiscal policy in the United States will increase the Japanese trade surplus.
Answer the following statement true (T) or false (F)
False
Contractionary fiscal policy in the United States will reduce both U.S. income and U.S. imports from Japan, so the Japanese trade surplus will fall.
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If the costs of production decrease, there is
A) an increase in aggregate supply and the AS curve shifts rightward. B) an increase in the quantity of real GDP supplied and a movement up along the AS curve. C) a decrease in aggregate supply and the AS curve shifts leftward. D) a decrease in the quantity of real GDP supplied and a movement down along the AS curve. E) an increase in aggregate supply and the AS curve shifts leftward.
Which of the following would be part of the Thai demand for U.S. dollars?
a. A Thai street seller trying to sell a shirt to an American tourist b. A Thai bank selling dollars it possesses in exchange for euros c. An American exchanging dollars for Thai bahts that she will spend on her next vacation to Bangkok d. A Thai export company selling its products in the American markets e. A Thai importer who wants to buy a Caterpillar tractor
The calculated value of a normal good's price elasticity is less than zero
Indicate whether the statement is true or false
In a developing economy, scarcity of capital may have more to do with a lack of incentive for citizens to save and invest productively than with any absolute scarcity of income available for capital accumulation.
Answer the following statement true (T) or false (F)