Which of the following best describes the effects of trade surpluses and trade deficits for an economy?
a. Trade surpluses and trade deficits can be beneficial for an economy in certain circumstances.
b. Trade surpluses and trade deficits can be harmful for an economy in certain circumstances.
c. Trade surpluses and trade deficits can be beneficial or harmful for an economy in certain circumstances.
d. Trade surpluses and trade deficits can be both beneficial and harmful for an economy in certain circumstances.
c. Trade surpluses and trade deficits can be beneficial or harmful for an economy in certain circumstances.
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The 2001 and 2003 tax cuts of the George W. Bush administration each had provisions to
A. phase out the estate tax. B. lower the earned income tax credit. C. raise tax rates at the lower end. D. raise tax rates at the upper end.
Suppose the residents of Metropolis travel to work either by bus or train. If the price of train tickets increases, then:
A. the demand for train tickets will decrease. B. the demand for bus tickets will increase. C. the demand for bus tickets will decrease. D. the demand for train tickets will increase.
According to the text, all of the following are reasons for firms to merge except
a. to exercise greater market control b. to increase control over suppliers of their inputs c. to increase control over buyers of their products d. to diversify assets e. to form a cartel
Which of the following about inflation is true?
a. High and variable rates of inflation will be easy for decision makers to forecast accurately. b. Unanticipated inflation is an increase in the general level of prices that was not expected by most decision makers. c. In contrast with unanticipated inflation, anticipated inflation implies that the increase in the general level of prices was expected by borrowers but not lenders. d. Inflation will increase the prices of goods and services that households purchase but not the wage rates of workers.