Imports are a leakage in the sense that
A. the international financial system is unstable.
B. consumers buy foreign output of goods and services.
C. foreigners earn less than U.S. workers.
D. a trade deficit increases aggregate demand.
Answer: B
You might also like to view...
A flat tax would increase the possibilities of abuses and misrepresentations that go with tax deductions
a. True b. False Indicate whether the statement is true or false
Goods produced for consumption in 2003 but remain unsold in 2003 become
a. intended inventories b. unwanted inventories c. aggregate expenditure d. transitory investment e. intended investment
Explain the logic according to liquidity preference theory by which an increase in the money supply changes the aggregate demand curve
The Great Depression did not
A. Lead to a high rate of inflation. B. Lead to an unemployment rate that reached 25 percent. C. Cause President Roosevelt to declare a "bank holiday" in 1933. D. Follow a period of apparent prosperity.