If net exports are a negative number, then:
A. we are not buying enough exports.
B. we are exporting less than we are importing.
C. GDP will underestimated when measured using the expenditure approach.
D. we are exporting more than we are importing.
Answer: B
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Inflationary tendencies and even hyperinflation in many Latin American countries have been exacerbated by the tendency of governments to
A) tax too heavily. B) regulate too heavily. C) print money to finance policies to stimulate the economy. D) keep out foreign competition. E) use industrial policies to foster growth.
The Federal Reserve Board of Governors has:
a. seven members who serve 6-year terms. b. 12 members who serve 14-year terms. c. seven members who serve 4-year terms. d. 12 members who serve 4-year terms. e. seven members who serve 14-year terms.
The invention of parity price ratios was designed to protect farmers' purchasing power. Over the years, these parity price ratios have
a. been fixed at 100 percent b. increased to approximately 125 percent of their initial value set in 1910–1914 c. been increasing at approximately 25 percent per year d. been falling and are less than 50 percent of the 1910–1914 ratio e. been volatile, increasing and decreasing sometimes dramatically, but still averaging approximately 100 percent of 1910–1914 levels, which was the long-run target
To be effective, a price floor must be
a. above the equilibrium price. b. at the equilibrium price. c. below the equilibrium price. d. anywhere on the graph.