Other things equal, which of the statements below is false? O a. A trade deficit will keep GDP constant if all imported goods and services are sold at cost in the domestic economy O b. A trade deficit will increase GDP if all imported goods and services are sold at below cost in the domestic economy Oc. A trade deficit will decrease GDP if all imported goods and services are sold at below cost in the domestic economy O d. A trade deficit will increase GDP if all imported goods and services are sold at above cost in the domestic economy

Other things equal, which of the statements below is false? O a. A trade deficit will keep GDP constant if all imported goods and services are sold at cost in the domestic economy O b. A trade deficit will increase GDP if all imported goods and services are sold at below cost in the domestic economy Oc. A trade deficit will decrease GDP if all imported goods and services are sold at below cost in the domestic economy O d. A trade deficit will increase GDP if all imported goods and services are sold at above cost in the domestic economy

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

If Australia has a current account deficit, then: Select one: O a. both B and C apply. O b. O C. O d. O e. the capital account will also be in deficit. we must sell domestic assets overseas to pay for it. we must sell more exports to pay for it. we will have a capital account surplus of the same amount.
The country of Nemedia does not trade with any other country. Its GDP is $20 billion. Its government collects $4 billion in taxes and pays out $3 billion to households in the form of transfer payments. Consumption equals $13 billion, and investment equals $2 billion. What is the value of the goods and services purchased by the government of Nemedia? $3 billion O $5 billion $17 billion $19 billion
QUESTION 42 Countries continue to join the European Union under the agreement of sharing a common currency, the euro. This would be represented by giving up which part of the exchange rate trilemma O Free capital mobility O Exchange-rate management O Monetary autonomy O None of the above QUESTION 43 Measures of democracy are highly correlated. O True O False QUESTION 44 According to Acemoglu and Robinson's theory of democratization, how would you explain that democracy consolidated in the United Kingdom before France? O Industrial capital was more important in the United Kingdom O Inequality was very high in France O Both reasons caused democracy to consolidate O Neither reason caused democracy to consolidate QUESTION 45 Which of the following describes the marginal product of labor for additional workers for a firm manager that was very close to meeting their plan's target production in centrally planned economies? O Given a Cobb-Douglass production function, when close to the…
In a small open economy if domestic private saving equals $50 billion, government saving equals-$20 billion, the trade balance is -$20 billion then Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a Domestic investment equals $50 billion and we are in a trade deficit b C d Domestic investment equals $30 billion and we are in a trade deficit The government budget is in a surplus of $20 billion if the government budget deficit is lowered then domestic investment would decrease. X Your answer
7
1. Multipliers, openness, and fiscal policy Consider an open economy characterized by the equations below C =c, +c(Y -T) I = d, + d,Y IM = m,Y X = x,Y * The parameters m, and x, are the propensities to import and export. Assume that the real exchange rate is fixed at a value of 1 and treat foreign income, Y*, as fixed. Also assume that taxes are fixed and that government purchases are exogenous (ie., decided by the government). We explore the effectiveness of changes in Gunder altenative assumptions about the propensity to import. a. Write the equilibrium condition in the market for domestic goods and solve for Y. b. Suppose government purchases increase by one unit. What is the effect on output? (Assume that 0
Generally, a larger Canadian trade deficit is accompanied by A. decreased borrowing by the Canadian government. OB. a smaller Canadian national debt. C. a larger Canadian federal government budget deficit. O D. a smaller Canadian federal government budget deficit.
When foreign residents buy U.S. Treasury securities to finance the budget deficit, OA. the trade deficit will not be affected. OB. the public debt will be reduced. OC. we can also anticipate a decrease in the trade deficit. O D. we can also anticipate an increase in the trade deficit. THIS
Asaap
Solution sent me part 3 and 4 all part solve u
QUESTION 1 S+M $75 50 $120 200 240 320 GDP In equilibrium in the above private open economy: O exports exceed imports. O a balance of payments surplus exists. O imports exceed exports. O net exports are a positive amount.
18. A reduction in the marginal propensity to import will cause A) the ZZ line to become flatter and a given change in government spending (G) to have a larger effect on domestic output. B) the ZZ line to become flatter and a given change in government spending (G) to have a smaller effect on domestic output. C) the ZZ line to become steeper and a given change in government spending (G) to have a larger effect on domestic output. D) the ZZ line to become steeper and a given change in government spending (G) to have a smaller effect on domestic output.