A large tax cut in the United States should lead to an increase in the trade deficit
a. True
b. False
Indicate whether the statement is true or false
True
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A decrease in gross domestic product (GDP) necessarily means that consumer welfare has decreased
a. True b. False Indicate whether the statement is true or false
Personal consumption expenditures only include expenditures for durable and nondurable goods and services.
Answer the following statement true (T) or false (F)
A Japanese bank buys U.S. government bonds, this purchase
a. increases U.S. net capital outflow and has no affect on Japanese net capital outflow. b. increases U.S. net capital outflow and increases Japanese net capital outflow. c. increases U.S. net capital outflow, but decreases Japanese net capital outflow. d. decreases U.S. net capital outflow, but increases Japanese net capital outflow.
Assume point A on a linear production possibilities curve represents the combination of 12 coffees and 3 cappuccinos, and point B represents 3 coffees and 6 cappuccinos. Suppose coffees are on the vertical axis and cappuccinos are on the horizontal axis. The absolute value of the slope of the production possibilities curve between points A and B equals:
A. 4. B. 6. C. 3. D. 1/3.