Refer to the above table. If the price of a movie download is $2 and the price of an apple pie is $5 and the consumer has $33, the rational consumer will purchase
A. 2 movies and 2 apple pies.
B. 2 movies and 3 apple pies.
C. 4 movies and 5 apple pies.
D. 5 movies and 6 apple pies.
Answer: C
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Expansionary fiscal policy may have an even smaller effect on aggregate demand in the open economy than a closed economy
a. True b. False Indicate whether the statement is true or false
An increase in the budget deficit causes domestic interest rates
a. and net capital outflow to rise. b. to rise and net capital outflow to fall. c. to fall and net capital outflow to rise. d. and net capital outflow to fall.
If Germany can make compact cars more efficiently than Russia, it enjoys
A. a comparative advantage. B. an absolute advantage. C. no advantage.
Purchases of domestic assets by foreign firms or households is called a:
A. trade deficit. B. trade surplus. C. capital outflow. D. capital inflow.