According to the open-economy macroeconomic model, if the U.S. government budget deficit increases, then both U.S. domestic investment and U.S. net capital outflow decrease
a. True
b. False
Indicate whether the statement is true or false
True
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If we take the production function and hold the level of output constant, allowing the amounts of capital and labor to vary, the curve that is traced out is called:
A) the total product. B) an isoquant. C) the average product. D) the marginal product. E) none of the above
Which of the following would likely increase private saving?
a. Both expansion of IRA type accounts and a consumption tax. b. Expansion of IRA type accounts, but not a consumption tax. c. A consumption tax, but not expansion of IRA type accounts. d. Neither expansion of IRA type accounts nor a consumption tax.
To decide what is meant by enlightened self-interest, behavioral economists will:
A. make their models more mathematically rigorous. B. use the ceteris paribus assumption repeatedly. C. base their models on induction. D. use laboratory and field experiments.
If, in the long run, people adjust their price expectation so that all prices and incomes move proportionately to an increase in the price level, then the long-run Phillips curve is vertical.
Answer the following statement true (T) or false (F)