Which of the following statements best describes the relationships of trade deficits, trade surpluses, international borrowing, and international lending?
a. An intimate relationship exists between a trade surplus and international borrowing and between a trade deficit and international lending.
b. An intimate relationship exists between a trade deficit and international borrowing but not between a trade surplus and international lending.
c. An intimate relationship exists between a trade surplus and international lending but not between a trade deficit and international borrowing, and between.
d. An intimate relationship exists between a trade deficit and international borrowing and between a trade surplus and international lending.
d. An intimate relationship exists between a trade deficit and international borrowing and between a trade surplus and international lendin
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Explain why a computer might depreciate rapidly just in one year even if it is in just as good of a condition as the day it was purchased?
What will be an ideal response?
How can freedom of the press promote economic growth?
A) A free press can be more easily swayed to report only one side of any issue. B) A free press reduces the likelihood that judges will protect private property rights. C) A free press can act as a watchdog for corruption, increasing chances for economic growth. D) A free press does not promote economic growth.
Which of the following statements best describes the rational expectations hypothesis?
A) Individuals will not enter into long-term agreements unless they are certain about the payments they will receive. B) It is likely that individuals will consistently make errors. C) Individuals will make random errors, independent of previous errors. D) It is reasonable to expect individuals to consistently underestimate the level of inflation.
In a December 2007 New York Times column Paul Krugman argued in favor of
a. protectionism based on the national-security argument. b. protectionism based on the infant-industry argument. c. protectionism based on the unfair-competition argument. d. keeping world markets relatively open.