If tastes for foreign goods and services go up, then we would expect aggregate expenditure to:
A. increase.
B. decrease.
C. remain constant.
D. increase and then sharply decrease more.
B. decrease.
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U.S. dollars can currently be exchanged for gold by foreign central banks, but not by U.S. citizens
Indicate whether the statement is true or false
________ is the ease with which a financial security can be exchanged for money
A) The face value B) The rate of return C) Risk D) Liquidity
Which of the following statements concerning major cycles is incorrect?
a. major cycles are characterized by wide fluctuations in business activity b. the United States has experienced five major cycles since World War II c. severe recessions in major cycles result in widespread unemployment d. during major cycles, economic activity rises and falls relative to the long-term growth trend
If income were equally distributed, a nation's Lorenz curve would be identical to the _______________.
Fill in the blank(s) with the appropriate word(s).