A two-part price is less efficient than a Ramsey
Indicate whether the statement is true or false
F The two-part price can be more efficient. Think of it this way: Each part of a two-part price may be set as a Ramsey price and two Ramsey prices should be better than one. With two prices there is opportunity for more subtle adjustment.
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When the U.S. current account has a deficit, international payments from the United States ________ U.S. international receipts
To cover the current account deficit, there must be a ________ in the combined capital and financial account and official settlements account. A) equal; surplus B) are less than; deficit C) exceed; surplus D) are less than; surplus E) exceed; deficit
Fiscal policy is government action to influence aggregate demand and in turn to influence the level of real GDP and the price level, through:
a. expanding and contracting the money supply. b. regulation of net exports. c. changes in government spending and/or tax revenues. d. encouraging businesses to invest.
When the Fed lowers the interest rate:
A. investment increases, and net exports decreases. B. both investment and net exports increase. C. both investment and net exports decrease. D. investment decreases, and net exports increase.
In the early 2000s, Ecuador suffered high inflation because the central bank was financing a government deficit. In terms of fiscal and monetary policy, what created the problem of inflation was that Ecuador's:
A. fiscal policy was contractionary, but its monetary policy was expansionary. B. fiscal and monetary policy were contractionary. C. fiscal and monetary policy were expansionary. D. fiscal policy was expansionary, but its monetary policy was contractionary.