Early in 2008, as the worldwide recession intensified in Europe, it seemed possible that the U.S. might be able to avoid the recession because
A. U.S. interest rates remained the highest in the world.
B. the U.S. dollar was very weak relative to the euro.
C. the U.S. federal government balanced its budget.
D. U.S. exports were falling at a rapid pace.
Answer: B
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Indicate whether the statement is true or false
How can a country benefit from effectively exporting its goods?
A. Its citizens can buy cheaper goods. B. Its businesses can invest in the future. C. Its domestic spending increases. D. Its citizens have more money.
When money is the basic measure of economic value, it serves as:
A. a store of value. B. bank reserves. C. a unit of account. D. a medium of exchange.
The average tax rate is:
A. change in taxes/change in taxable income. B. total taxes/total taxable income. C. the sum of the marginal tax rate and the rate of transfer payments. D. the tax on incremental income less the tax on total income.