In an open economy, there should be a
a. close positive relationship between investment and savings.
b. a close positive relationship between trade deficits and investment.
c. a negative relationship between trade deficits and savings.
d. a positive relationship between a country's savings rate and higher domestic interest rates.
C
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If the United States exports planes to Brazil and imports ethanol from Brazil, the price received by U.S. producers of planes ________, and the price received by Brazilian producers of ethanol ________
A) does not change; does not change B) rises; rises C) rises; falls D) falls; rises E) falls; falls
Economists who believe there is a short-run trade-off between inflation and unemployment attribute it to the ______.
a. complete flexibility of prices b. complete flexibility of wages c. slow adjustment of input prices d. fast adjustment of input prices
When perfect competition prevails, which characteristic of firms is likely to be observed?
What will be an ideal response?
How does the government carry out income redistribution?
What will be an ideal response?