Assume there are no prospective investment projects (I) that will yield an expected rate of return (r) of 25 percent or more, but there are $5 billion of investment opportunities with an expected rate of return between 20 and 25 percent, an additional $5 billion between 15 and 20 percent, and so on. The investment demand curve for this economy is:
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Since the period following World War II (the early 1950s), the proportion of most countries' production being used in some other country
A) remained constant. B) increased. C) decreased. D) fluctuated widely with no clear trend. E) increased slightly before dropping off.
Which of the following tools of commercial policy acts as a quantitative restriction on imports?
a. Tariff b. Subsidy c. Health and Safety regulations d. Quota e. Government procurement
Believers in a fixed-rule approach to stabilization policy propose that
a. Congress should balance the high employment budget. b. the Fed should keep the money supply growth constant. c. the economy be stabilized by automatic mechanisms. d. All of the above are correct.
Which statement is false?
A. Looking at our trading pattern with Japan, one might reach the conclusion that we were an economic colony of Japan. B. Until the 1990s, the United States was the prime exporter of consumer electronics products, such as TVs, cameras and DVD players. C. In 1984 U.S. trade deficits first passed the $100 billion mark. D. The last year the U.S. ran a trade surplus was 1975.