An increase in a country's budget deficit
a. increases net capital outflow, so the demand for its currency in the market for foreign-currency exchange shifts right.
b. increases net capital outflow, so the supply of its currency in the market for foreign-currency exchange shifts right.
c. decreases net capital outflow, so the demand for its currency in the market for foreign-currency exchange shifts left.
d. decreases net capital outflow, so the supply of its currency in the market for foreign-currency exchange shifts left.
d
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Which of the following is NOT a characteristic of competitive markets?
A) standardized product B) purchases and sales of individual traders are small relative to the total volume traded C) prices adjust quickly D) there are relatively few sellers
Between 1930 and 2010, the biggest budget deficit as a percentage of GDP was incurred by the federal government in: a. 1980 to finance the Cold War
b. 1990 to prevent setbacks from the oil crisis. c. 1945 to finance the fighting of World War II. d. 2007 to combat terrorist attacks.
José Conseco, then a major league baseball star who had just signed a very large contract, said, "I don't think it's what I'm worth. It's what the market holds, what the organizations are willing to pay a player." He was really talking about
A. the substitution effect. B. the income effect. C. the primary labor market. D. the secondary labor market. E. economic rent.
The fact that the cross-price elasticity of natural gas with respect to the price of fuel oil is 0.4 implies that
A. natural gas and fuel oil are substitutes. B. natural gas is a normal good. C. the quantity of natural gas demanded will decrease by 1.6% when the price of fuel oil decreases by 4%. D. both a and c