An increase in a small open economy's government budget deficit that reduces national saving and the current account balance causes an
A) increase in desired saving.
B) increase in the world real interest rate.
C) increase in exports.
D) increase in absorption.
D
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In the BOP, travel and tourism are included in
A) unilateral transfers. B) the capital account. C) the merchandise account. D) the services account.
Which of the following hypotheses is a plausible explanation for why U.S. households save so little?
A. Government assistance to low-income U.S. households has increased the demonstration effects on spending by the poor. B. Most Americans already own homes and, therefore, have less need for life-cycle saving. C. Government assistance to the elderly has reduced the need for life-cycling saving. D. The highly developed financial markets in the U.S. have reduced the need for precautionary saving by Americans.
Technological advances in pollution reduction:
A. reduce the demand for pollution permits. B. increase the demand for pollution permits. C. reduce the supply of pollution permits. D. increase the supply of pollution permits.
The definition of a price taker is:
A. having market power. B. having government determine what you sell goods and services for. C. being competitive. D. having no control over the market price.