An economy with a trade deficit must also have:
A. positive net capital inflows.
B. a trade deficit.
C. positive net capital outflows.
D. a budget surplus.
Answer: A
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When the Fed ________ the federal funds rate, the opportunity cost of firms' investment ________ and so the quantity of investment ________
A) increases; falls; increases B) decreases; falls; decreases C) increases; rises; decreases D) decreases; rises; decreases E) increases; rises; increases
During the postwar period, changing patterns of consumer demand led to changes in the distribution of jobs in the US economy. In particular, the income elasticity of demand for many consumer products was ____________ the income elasticity of demand for services, such as medical care and insurance
a. less than b. greater than c. equal to
Which of the following would generate positive externalities?
a. Flu vaccinations. b. Farmers' use of pesticides. c. Cigarette smoking in elevators. d. Litter left at the beach. e. An unkept front yard.
Use the above table. At an income of $50
A. real dissaving is $50. B. real saving is $10. C. real saving is $20. D. real dissaving is $10.