The U.S. trade deficits of the 1980s and 1990s may represent a problem because they will require
A. higher consumption in the future in order to increase imports.
B. lower consumption in the future in order to repay interest and principal to foreigners.
C. lower consumption in the future in order to finance increased investment.
D. higher budget deficits in the future in order to increase the trade surplus.
Answer: B
You might also like to view...
The conditions in which vertical relationships can enhance a firm's ability to price discriminate include
a. the manufacturer's product is of value to just one type of customer b. the costs of arbitraging the price differences across markets is small c. the manufacturer acquires the distributer in the higher priced market d. competition provide little ability for the manufacturer has to price above marginal cost
To calculate GDP using the income approach, add:
a. indirect business taxes and Social Security taxes. b. capital depreciation and Social Security taxes. c. indirect business taxes and personal taxes. d. indirect business taxes and depreciation. e. compensation of employees, rents, profits, net interest, indirect business taxes, and depreciation.
If the United States raises tariffs on foreign goods, it may achieve
A. Higher production possibilities. B. Greater profitability of import-competing firms. C. Higher efficiency in domestic production. D. Higher U.S. exports.
Ceteris paribus, if the corn crop is 15 percent larger this year than it was last year, farmers will have to ________ the price of corn by ________ to sell the new crop.
A. reduce; exactly 15 percent B. raise; more than 15 percent C. reduce; more than 15 percent D. reduce; less than 15 percent