Other things the same, if the U.S. real exchange rate appreciates, U.S. net exports
a. increase and U.S. net capital outflow decreases.
b. decrease and U.S. net capital outflow increases.
c. and U.S. net capital outflow both increase.
d. and U.S. net capital outflow both decrease.
d
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Refer to Figure 24-2. Ceteris paribus, a decrease in the expected price of an important natural resource would be represented by a movement from
A) SRAS1 to SRAS2. B) SRAS2 to SRAS1. C) point A to point B. D) point B to point A.
In the figure above, what is the MPC?
A) 0.75 B) 1.00 C) 0.50 D) 0.80 E) 0.90
Which of the following is the largest category of federal government expenditures?
A) transfer payments B) grants to state and local governments C) interest on the debt D) defense spending
Concentration of industries can lead to external economies for all of the following reasons EXCEPT
A) concentrated industries will not be competitive. B) concentrated industries will attract a network of input suppliers. C) concentrated industries will attract a deep pool of skilled labor. D) concentrated industries will experience knowledge spillovers.