What is the relationship between net exports, the government sector surplus or deficit, and the private sector surplus or deficit?
What will be an ideal response?
The relationship is that net exports equals the government surplus or deficit plus the private sector surplus or deficit.
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A negative externality is created if:
A. an action harms someone not involved in the market transaction. B. an action benefits someone not involved in the market transaction. C. neither helps nor hurts someone not involved in the market transaction. D. an action harms or benefits someone not involved in the market transaction.
What are the biggest advantages the U.S. has over the EU in terms of being an Optimum Currency Area?
A) low mobility of labor, higher labor productivity, lower level of intra-regional trade B) high unionization of U.S. Labor force C) high mobility of labor force, more transfer payments between regions D) higher uniformity of population's taste in consumption E) more specialized labor force and natural resource advantages
The percent of population that experiences transient poverty at some point in their lives is:
A. less than 10 percent. B. approximately 12 percent. C. more than 25 percent. D. approximately 40 percent.
The equilibrium in the market for loanable funds is:
A. at the interest rate set by the Fed. B. at the price at which the quantity supplied is slightly greater than quantity demanded. C. where the amount being borrowed and the amount being saved is the same. D. where the amount being saved is enough for banks to cover required reserves.