A current account deficit can be good for a nation if the:
a. Balance of trade is positive.
b. Nation is selling investment goods to the rest of the world.
c. Nation is the recipient of foreign capital flows that have a positive contribution to the economy.
d. Nation's reserve assets are falling.
.C
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The above figure shows the U.S. market for flip-flops. With international trade, the United States imports ________ flip-flops
A) 400,000 B) 0 because the United States exports flip-flops C) 700,000 D) 300,000 E) 500,000
Jim' burger produces 500 burgers per week. Each burger is priced at $3 . A business ordered 750 burgers for an upcoming event. Jim decided to offer a discount by reducing the price of the burgers to $2.50 for the party. What is the marginal revenue of selling the 50th burger for the party?
a. $3 b. $2.50 c. $0.50 d. It cannot be determined with the information given
Suppose that in a certain nation the flat income tax rate of 40 percent is reduced to 35 percent and as a result the tax base falls from $400 billion to $375 billion. As a result, tax revenues __________, indicating the nation is on the __________ portion of its Laffer curve
A) rise; upward-sloping B) rise; downward-sloping C) fall; upward-sloping D) fall; downward-sloping
The Stability and Growth Pact (SGP) was a failure because of all of the following reasons, EXCEPT:
A) surveillance failure. B) weak punishment. C) once countries joined the Eurozone, enforcement of rules was impossible. D) consultations between the Federal Reserve and the ECB broke down.