In a large open economy like the United States, an increased government budget deficit which reduces national saving
A. has no effect on investment, but reduces the current account balance.
B. reduces investment and improves the current account balance.
C. has no effect on either investment or the current account balance.
D. reduces investment and reduces the current account balance.
Answer: D
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One requirement for an industry to be perfectly competitive is that
A) there are no restrictions on entry into or exit from the market. B) there are multiple restrictions on entry into or exit from the market. C) there are many firms selling different products. D) sellers and buyers have imperfect information about prices. E) the many firms sell slightly different products.
The purchase of U.S. assets by foreigners is a:
a. capital inflow. b. capital outflow. c. current account deficit. d. unilateral transfer.
Games with a finite number of strategies do not always have a Nash equilibrium
Indicate whether the statement is true or false
Which of the following is a limitation of GDP?
(a) It doesn't include a measure of the black economy. (b) It doesn't include a value for externalities. (c) It doesn't include a value for voluntary work. (d) All of the above are limitations of GDP.