If financial turmoil overseas reduces U.S. net exports, then those in favor of "lean against the wind policies" would advocate
a. decreasing the money supply and cutting taxes.
b. decreasing the money supply and raising taxes.
c. increasing the money supply and cutting taxes.
d. increasing the money supply and raising taxes.
c
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When a firm is at its short-run break-even point
A) economic profits are positive. B) economic profits equal zero and the firm should shut down. C) economic profits equal zero and the firm is earning a nominal rate of return on investment. D) economic profits are negative but the firm should continue to produce because accounting profits are positive.
If Congress instituted an investment tax credit
a. it would make buying bonds more desirable, so the demand for loanable funds would shift. b. it would make buying capital goods more desirable, so the demand for loanable funds would shift. c. it would make buying bonds more desirable, so the supply of loanable funds would shift. d. it would make buying capital goods more desirable, so the supply of loanable funds would shift.
When a tariff is imposed, the gap between the domestic price and the price received in the exporting country is captured by
A) consumers in the importing country. B) the domestic producers of the good. C) the government of the importing country. D) foreign exporters. E) the domestic importers of the good.
Your favorite clothing website is offering a new shipping promotion: you can pay a $24 membership fee and receive free shipping for 12 months, or you can continue to receive free shipping as long as you spend at least $50 with every order. Otherwise you will have to pay $6 per shipment. You think $24 sounds like a good deal, but you do not want to make the mistake of being overconfident. Explain how you would make your decision.
What will be an ideal response?