A sudden appreciation in the exchange rate of a country deteriorates the terms of trade of the country
a. True
b. False
Indicate whether the statement is true or false
True
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What is meant by the term "free market"?
What will be an ideal response?
Which of the following accurately describes condemnation by right of eminent domain?
(a) It involves the redistribution of property first owned by the government to private businesses. (b) It was never exercised for such private purposes as acquiring land for canal or railroad construction during the antebellum period. (c) The benefits can be diverse and the costs can be concentrated. (d) It was never exercised by the federal government before the 1870s.
The government, concerned about the wealth redistribution problem caused by the inequality of debt holdings, intervenes by
a. making a special effort to sell bonds to corporations b. creating a proportional income tax system c. sometimes instructing commercial banks to divest some of their bond holdings d. prohibiting the sale of bonds to the Federal Reserve e. limiting the purchase of bonds by foreigners
Which of the following would be cures for the U.S. trade deficit?
A. Americans saving less and spending more B. A severe recession in Europe and Asia C. A severe recession in the United States D. A tax cut E. All of these responses are correct.