In an open economy, the government budget deficit tends to.
a. attract foreign capital.
b. be less important than the current account deficit.
c. crowd out private investment.
d. crowd out imports.
e. depreciate the currency.
Answer: a. attract foreign capital.
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What will be an ideal response?
Suppose that at a given level of output, a perfectly competitive firm charges a price of $12 and has average total costs of $10 . If its economic profit is $20,000 . then it must be producing:
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What will be an ideal response?