When U.S. residents buy products that were made in Japan, then ultimately the Japanese want
A) yen.
B) dollars.
C) Japanese goods.
D) goods, including U.S.-made goods.
Ans: D) goods, including U.S.-made goods.
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During the 2008 financial crisis, banks restricted ________, and the M2 money multiplier ________
A) buying securities; increased B) lending; increased C) deposits; increased D) lending; decreased E) deposits; decreased
Which of the following conclusions is not supported by the Three-Sector-Model?
a. A higher GDP Price Index in a nation increases the ability and willingness of domestic businesses to supply goods and services, but it decreases consumers' willingness and ability to buy them. b. An increase in the supply of a nation's currency in the foreign exchange market lowers its international value. c. An increase in nation's demand for goods and services within the Keynesian range is often accompanied by a strong rise in the consumer price index. d. A decrease in nation's demand for goods and services within the Intermediate range usually leads to higher employment.
The investment rate is the percentage of total output allocated to
A. Saving. B. The production of new plants, equipment, and structures. C. Education and training for the workforce. D. Consumer retirement accounts.
Refer to the above diagram. The economy is at equilibrium at point C. What fiscal policy would increase real GDP?
A. Increase aggregate demand from AD1 to AD2 by increasing government spending. B. Make no change because the economy is at or near its full-employment level of real output. C. Increase aggregate demand from AD2 to AD1 by decreasing taxes. D. Decrease aggregate demand from AD2 to AD3 by increasing taxes.