If in the long run, imports are paid for by exports, then
A. any restriction of imports ultimately reduces exports.
B. any restriction of imports ultimately expands exports.
C. any restriction of exports has no impact on imports.
D. any restriction of imports has no impact on exports.
Answer: A
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Which of the following statements best describes balanced budget amendments?
a. A balanced budget amendment allows small, temporary deficits that might, in some cases, be necessary. b. A balanced budget amendment prevents even small, temporary deficits that might, in some cases, be necessary. c. A balanced budget amendment allows large, temporary deficits that might, in some cases, be necessary. d. A balanced budget amendment prevents large, temporary deficits that might, in some cases, be necessary.
Other things the same, bonds are likely to have higher interest rates if they have
a. tax exemptions and short terms. b. tax exemptions and long terms. c. no tax exemptions and short terms. d. no tax exemptions and long terms.
Which of the following is an example of the multiplier at work as a result of an increase in consumption expenditures?
A. Consumers compete with the government by increasing their expenditures, causing businesses to increase their investments to satisfy the increased demand. B. Households and businesses receive income from consumption expenditures; they spend a portion of this new income; these expenditures, in turn, generate income for other businesses and households, which in turn spend a portion of the new income, and so on. C. Consumption expenditures increase inflation, which reduces real incomes; consumer expenditures and investment decline, which reduces aggregate spending. D. Consumption expenditures stimulate investment in new plants and equipment to produce goods and services for the government, which provides fewer jobs and decreases incomes.
Karl Marx believed the central figures in an industrial economy were the
A. labor union leaders. B. heads of the ruling political party. C. capitalists. D. stock market speculators.