What are the three types of gains from international transactions between the residents of different countries?
What will be an ideal response?
The three types are:
(1 ) Gains due to comparative advantage and economies of scale.
(2 ) Gains due to inter-temporal trade, which is the exchange of goods and services for claims to future goods and services, which is for assets.
(3 ) Gains due to trades of assets for assets, such as the exchange of real estate located in London for U.S. Treasury bonds.
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The sequence of events following an increase in the federal deficit would be higher interest rates, a(n)
A. depreciating dollar, and a larger current account deficit. B. depreciating dollar, and a smaller current account deficit. C. appreciating dollar, and a larger current account deficit. D. appreciating dollar, and a smaller current account deficit.
The price of migraine medicine increased by 6%, causing a 1% increase in quantity supplied. Price elasticity of supply
a. is 6. b. is 167. c. is 1. d. cannot be determined.
An expectation that encourages people to behave in a certain way
a. free enterprise b. traditional economy c. incentive d. safety net e. socialism
A decrease in aggregate demand results in a(n) ________ in the ________
A) recession; long run B) expansion; long run C) expansion; short run D) recession; short run