Because of the United States' long-standing trade deficit with Japan, the supply of U.S. dollars in Japan has increased. Which of the following is true about this situation?
A. The trade deficit will continue to increase in size as Japan gains more U.S. dollars and economic strength.
B. The value of the U.S. dollar will decrease in terms of the yen, ceteris paribus, thereby reducing the trade deficit.
C. We cannot say anything for sure about the trade deficit other than that it exists.
D. Trade restrictions on Japanese imported goods are ultimately the only way to reduce the trade deficit.
Answer: B
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A. must always be considered in social marginal costs. B. must not be considered in social marginal costs. C. must sometimes be considered in social marginal costs. D. have nothing to do with social marginal costs.
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A. Commercial paper market. B. Money market. C. Foreign exchange market. D. Federal funds market.
A consumer with a fixed income will maximize utility when each good is purchased in amounts such that the:
A. Total utility is the same for each good B. Marginal utility of each good is maximized C. Marginal utility per dollar spent is the same for all goods D. Marginal utility per dollar spent is maximized for each good