When the United States has a current account deficit, it must ______.
a. reduce the difference by increasing its unilateral transfers to foreigners
b. finance the difference by importing more goods and services than it sells
c. finance the difference by borrowing or by selling more capital assets than it buys
d. increase the difference by borrowing or by buying more capital assets than it sells
c. finance the difference by borrowing or by selling more capital assets than it buys
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Keynes's liquidity preference theory indicates that the demand for money is
A) constant. B) positively related to interest rates. C) negatively related to interest rates. D) negatively related to bond values.
An economy may be operating at a point inside the production possibilities curve if: a. technological progress enables the economy to produce quantities of output otherwise unattainable. b. a substantial amount of labor is unemployed
c. a substantial amount of machinery is idle. d. either b. or c. occur.
Aggregate demand is the sum of
A. C + I + G + (X ? IM). B. C + I + X. C. C + I + X ? IM. D. C + I + G.
The HITECH Act of 2009 provides $20 billion of subsidies to encourage hospitals and physicians to:
A. Use more hi-tech diagnostic equipment B. Adopt electronic medical-records systems C. Switch from human lab-technicians to electronic ones D. Devote more research efforts toward hi-tech treatments