(I) The U.S. trade deficit is a financial obligation of the federal government, and if it is not paid off, foreigners will be reluctant to loan money to the U.S. government. (II) When a nation runs a current account deficit due to a merchandise trade deficit, it must also be true that the nation has a surplus on its capital account due to an inflow of foreign capital
a. I is true; II is false.
b. I is false; II is true.
c. Both I and II are true.
d. Both I and II are false.
B
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A. Federal Reserve notes B. savings deposits C. coins D. checkable deposits
A demand curve to remain unit elastic along its entire length should
a. cross the X axis. b. touch the X axis but not the Y axis. c. never touch either the X or the Y axis. d. touch the Y axis but not the X axis.
The laws of supply and demand did not apply to elephant tusks.
Answer the following statement true (T) or false (F)
Starting from long-run equilibrium, an increase in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. lower; higher D. higher; potential