If a nation is running a trade deficit, it is
a. spending more on public services than it is raising in tax revenues.
b. worse off as the result of its trade with foreign countries.
c. importing more goods and services than it exports.
d. encountering a balance of payments disequilibrium.
C
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A ________ tax system is one in which tax rates increase with taxable base incomes
A) regressive B) progressive C) proportional D) supplementary
Critically evaluate the following statement: "People in developing countries are not poor because they have large families. Rather, they have large families because they are poor."
What will be an ideal response?
An increase in the consumption of a good resulting from a reduction in price that makes the good cheaper in relation to other goods is called the:
a. substitution effect. b. income effect. c. real balance effect. d. inelasticity effect.
The amount that the bank is legally required to keep on hand is called the:
A. required reserves. B. demand deposits. C. federal funds. D. reserve ratio.