The expected effect of the Bush tax cuts would be a(n)
A. lower real interest rate.
B. exchange rate depreciation.
C. increased current account deficit.
D. All of these responses are correct.
Answer: C
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The social cost of producing a good that generates negative externalities is the sum of the ________
A) average variable cost and average fixed cost of production B) average total cost and the marginal cost of production C) private cost and external costs of production D) total fixed cost and total variable cost of production
Contractual savings institutions include
A) mutual savings banks. B) money market mutual funds. C) commercial banks. D) life insurance companies.
Suppose you read in the Wall Street Journal that actual investment in Canada in 2003 was less than the intended investment Canadian businesses had hoped to make. You would conclude that in 2003, the level of inventories in Canada was
a. less than desired and that Canadian output rose b. less than desired and that Canadian output fell c. greater than desired and that Canadian output rose d. greater than desired and that Canadian output fell e. greater than desired but would be unable to tell what effect it had on Canadian output
When you have $1,000 in a savings account at a bank:
A. both you and the bank now have a financial asset of $1,000. B. the bank holds a financial asset of $1,000 and you hold a financial liability of $1,000. C. both you and the bank now have a financial liability of $1,000. D. the bank holds a financial liability of $1,000 and you hold a financial asset of $1,000.