The main reason for our balance of payments deficits has been
A. military spending abroad.
B. spending by U.S. tourists abroad.
C. our negative balance of trade.
D. None of these choices are correct.
C. our negative balance of trade.
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When social and private costs differ, economists state that
A) there will be economic profit in the society. B) the society will produce inside the production possibilities frontier. C) there is an externality. D) there is not an efficiency problem but an equity problem.
Which one of the following items would be the most liquid?
a. Pizza. b. Ticket to next week's basketball game. c. Stereo. d. Dollar bill. e. U.S. savings bond.
Given the following Taylor rule:Target federal funds rate = natural rate of interest + current inflation + 2x(inflation gap) + x(output gap);What do the coefficients on the inflation and output gaps (2x, x) reveal?
What will be an ideal response?
If Americans develop a greater appreciation for Mexican-made goods, we should observe the following change(s) in the U.S. dollar-peso market:
A. the demand curve for dollars shifts right. B. a movement down the supply curve of dollars. C. the supply curve of dollars shifts left. D. the demand curve for pesos shifts right.