Net exports are negative when:
A. a nation's imports exceed its exports.
B. the economy's stock of capital goods is declining.
C. depreciation exceeds domestic investment.
D. a nation's exports exceed its imports.
A. a nation's imports exceed its exports.
You might also like to view...
Suppose that from a new checkable deposit, First National Bank holds eight million dollars on deposit with the Federal Reserve, nine million dollars in excess reserves, and faces a required reserve ratio of ten percent
Given this information, we can say First National Bank has ________ million dollars in required reserves. A) one B) two C) nine D) ten
Governments can most effectively encourage a firm to produce the efficient level of output of a good whose production causes a beneficial externality by
a. increasing the demand at every price for the good. b. subsidizing the production of the good. c. taxing the production of the good. d. imposing a price ceiling on the good.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, an increase in unemployment may be represented by the movement from
A. B to A. B. A to C. C. C to D. D. B to D.
The government increases the corporate profits tax. As a result, corporate profits decrease. This will
A. decrease the nonlabor income of households, causing consumption to decrease and labor supply to decrease or increase depending on the relative magnitude of the income and substitution effects. B. decrease the nonlabor income of households, causing consumption to decrease and labor supply to decrease. C. have no effect on households. D. decrease the nonlabor income of households, causing consumption to decrease and labor supply to increase.