When a country has a negative current account, that country is
A) borrowing from the rest of the world.
B) lending to the rest of the world.
C) running a government budget surplus.
D) None of the above is correct.
A
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U.S. automobile manufacturers chose not to switch to producing subcompact cars for which of the following reasons?
(a) They did not perceive the U.S. demand for subcompacts as permanent. (b) This switch was not economically feasible in the long run. (c) Government policy prevented them from doing so. (d) All of the above.
A(n) ____ may offer products that are either differentiated or identical
a. monopolistically competitive firm b. monopolist c. oligopolistic firm d. perfectly competitive firm e. monopsonist
An economist estimates that 0.67 is the price elasticity of demand for disposable diapers. This suggests that disposable diaper producers could
a. advertise more to raise the price elasticity of demand b. encourage more parents to use cloth diapers c. lower the price of disposable diapers to raise more revenue d. raise the price of disposable diapers to raise more revenue e. increase revenue by lowering price elasticity of demand
In the long run, fiscal policy influences
a. saving, investment, and growth; in the short run, fiscal policy primarily influences technology and the production function. b. saving, investment, and growth; in the short run, fiscal policy primarily influences the aggregate demand for goods and services. c. technology and the production function; in the short run, fiscal policy primarily influences saving, investment, and growth. d. the aggregate demand for goods and services; in the short run, fiscal policy primarily influences technology and the production function.