In the mid- to late 1980s, the United States had "twin deficits" because both ________ and ________ were negative.
A. government saving; private saving
B. the current account; investment
C. saving; investment
D. government saving; the current account
Answer: D
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Which of the following would increase output in the short run?
a. an increase in stock prices makes people feel wealthier b. government spending increases c. firms chose to purchase more investment goods d. All of the above are correct.
If a natural disaster were to cause a negative long-run supply shock to the economy, once the economy adjusts, the new equilibrium will be at a:
A. higher price level and lower level of output. B. lower price level and lower level of output. C. higher price level and higher level of output. D. lower price level and higher level of output.
Because each perfectly competitive firm sells a product identical to that of the other firms
A) each firm tries to cut prices to increase its market share. B) each firm's output is a perfect substitute for the output of any other firm. C) each firm expects to earn some economic profit. D) the demand for each firm's product is perfectly inelastic.
A professor will sometimes pay higher prices for some goods compared to an undergraduate student because
a. They value the item more than the student b. They like wasting money c. crowded and understaffed discount stores impose higher time costs d. they like to show off