Discuss the options for financing a balance of payments deficit
What will be an ideal response?
Discussed in the chapter.
You might also like to view...
If a government wants to pursue an expansionary fiscal policy, then a tax cut of a certain size will be more expansionary when the
A. unemployment rate is low. B. economy's MPS is large. C. economy's MPC is large. D. economy's MPC is small.
The cross elasticity of demand for substitutes is always positive
Indicate whether the statement is true or false
The simple circular-flow model for households and firms is an economic model that focuses on the interaction between households and firms. Which of the following statements regarding the model is correct?
a.) the model is missing the interaction between firms and the resource market. Therefore, it cannot predict well. b.) the model is missing the interaction between households and the product market. Therefore, it cannot predict well c.) the model has too many simplifying assumptions, and it cannot be used to make predictions about the real world d.) the model is a simplification of the real world, and it can be used to make predictions about the real world e.) the model is missing the interaction between firms and the produce market. Therefore, it cannot predict well
If import restrictions prohibit foreigners from selling various goods in the U.S. market,
a. the United States will be able to export more goods abroad. b. foreigners will have fewer U.S. dollars with which to buy goods from Americans. c. the United States will be able to produce a larger output than would otherwise be the case. d. the domestic producers in the protected industries will supply goods to U.S. consumers at lower prices than would otherwise be the case.