The United States will have a trade deficit as long as: ( hint 2 answers)
a. imports are greater than exports.
b. spending on the American economy is less that what it can produce.
c. spending by American households, businesses, and government is greater than GDP.
d. spending on the American economy is greater than what it can produce.
Answer: a. imports are greater than exports.
d. spending on the American economy is greater than what it can produce.
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What will be an ideal response?
Rational utility maximizing consumers tend to:
A. choose the same bundle of goods regardless of their income. B. change their consumption choices when either prices or income changes. C. buy the same bundle of goods regardless of the prices charged. D. change their consumption choices only when both prices and income changes simultaneously.
Which statement is false?
A. Had the stock market not crashed and the rest of the world not gone into a depression, the U.S. depression might have been avoided. B. By the end of 1930 thousands of banks had failed. C. By the first week in March 1933 every single bank in the United States had shut its doors. D. None of the statements are false.
An increase in supply will occur when
A) the supply curve shifts downward to the right. B) the supply curve shifts upward to the left. C) the demand curve shifts downward to the left. D) the demand curve shifts upward to the right.