A balance of payments deficit occurs when:
A. exports exceed imports.
B. the supply of a nation's currency exceeds the demand for the currency at the current exchange rate.
C. the demand for a nation's currency exceeds the supply of the currency at the current exchange rate.
D. the supply of a nation's currency is equal to the demand for the currency at the current exchange rate.
Answer: B
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Which of the following would NOT be directly included in the U.S. GDP in 2010?
A) the purchase of a new home in Atlanta, Georgia in 2010 B) the market value of the jet fuel bought by Delta to use for its flights in 2010 C) the market value of restaurant meals sold in 2010 D) the value of the automobiles produced in 2010 at the Toyota plant located in Georgetown, Kentucky E) legal services provided to first time home buyers during 2010
The U.S. federal income-tax structure is designed so that
a. all citizens pay a flat marginal tax rate. b. the marginal tax rate generally rises with income. c. the average tax rate falls as income rises. d. all citizens pay a flat average tax rate.
In a capitalist system, the decisions and actions of millions of consumers and firms are highly coordinated by:
A. The state and government B. Markets and prices C. A central planning agency D. An international organization
Between a trough and a peak, the economy goes through a(n)
A. expansion. B. hyperinflation. C. bust. D. recession.