A higher rate of saving should lead to
A) higher current consumption.
B) less growth.
C) more investment, higher capital growth, and more future consumption.
D) a higher price level and reduced future consumption.
C
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In the foreign exchange market, how will each of the following influences affect the demand for dollars and the demand curve for dollars?
a. an increase in the exchange rate b. an increase in the U.S. interest rate c. a fall in the expected future exchange rate
Figure 6-1
illustrates the four possibilities of the distribution of costs and benefits among voters for a government project. For which type would the government most likely undertake many projects that would be considered inefficient or counterproductive (in other words, do too many of them relative to economic efficiency)?
a.
type A
b.
type B
c.
type C
d.
type D
A weaker dollar will stimulate sales of U.S. exports
Indicate whether the statement is true or false.
Between the years of 2001 and 2003, what happened to the structural deficit?
A. It declined rapidly. B. It fell steadily. C. It increased steadily. D. It remained fairly constant.