Q: What two numbers “balance”? a) The current account
What two numbers “balance”? a) The current account and exports. b) The capital account and the current account. c) Exports and imports. d) Short term investment income and short term investment pa...
See AnswerQ: The cause of the European financial crisis had its origins in
The cause of the European financial crisis had its origins in a) the creation of the euro. b) vast overspending in Germany. c) uncompetitive tax collections in Greece. d) speculative home buying i...
See AnswerQ: The supply and demand model examines how prices and quantities are determined
The supply and demand model examines how prices and quantities are determined a) in markets. b) by governments. c) by churches. d) by monopolists.
See AnswerQ: The elasticity of demand is related to the slope of the demand
The elasticity of demand is related to the slope of the demand curve a) and only the slope of the demand curve. b) but also the (price, quantity) position on the demand curve. c) but also the slope...
See AnswerQ: Suppose a firm cannot figure out whether the demand for the good
Suppose a firm cannot figure out whether the demand for the good it sells is elastic or inelastic but discovers that every time it raises its price, its total revenue declines. Their a) demand is un...
See AnswerQ: When firms add workers and find that the additional workers add less
When firms add workers and find that the additional workers add less to output than their predecessors did, they are experiencing a) the division of labor. b) diminishing returns. c) the law of la...
See AnswerQ: Gross domestic product is counted using two methods: one which counts
Gross domestic product is counted using two methods: one which counts all the ways people _____ money and another which counts all the ways people _____ money. a) earn, spend b) spend, save c) earn...
See AnswerQ: Use the aggregate supply-aggregate demand model to determine which of
Use the aggregate supply-aggregate demand model to determine which of the following will lead to higher prices. a) A tax increase b) A fall in world oil prices c) An increase in interest rates d)...
See AnswerQ: Adjustments to tax and spending policies serve as primary elements of
Adjustments to tax and spending policies serve as primary elements of a) discretionary fiscal policy. b) nondiscretionary fiscal policy. c) monetary policy. d) exchange rate policy.
See AnswerQ: When engaging in monetary policy, the impact of expansionary policy on
When engaging in monetary policy, the impact of expansionary policy on an aggregate demand – aggregate supply model is to a) increase aggregate demand. b) increase aggregate supply. c) decrease ag...
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