Considering only its direct effect on income, an expansionary monetary policy tends to:
A. increase a trade deficit and decrease the exchange rate.
B. decrease a trade deficit and decrease the exchange rate.
C. increase a trade deficit and increase the exchange rate.
D. decrease a trade deficit and increase the exchange rate.
Answer: A
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Which of the following chain of events occurs when a tariff is imposed on a good?
A) Domestic prices fall, shifting the demand curve rightward, and consumers buy more of the good. B) Domestic prices fall, decreasing the domestic quantity supplied and increasing the quantity demanded. C) Domestic prices rise, shifting the domestic supply curve rightward. D) Domestic prices rise, shifting the demand curve leftward and the domestic supply curve rightward. E) Domestic prices rise, decreasing the quantity demanded and increasing the domestic quantity supplied.
Given the availability of the Medicaid program, why are so many poor people uninsured?
A. Because only a fixed percentage of the population can participate in Medicaid at any time. B. Because many poor people earn enough that they do not qualify for Medicaid. C. Because nonincome requirements screen many poor people from the program. D. Because only native-born Americans are eligible for the program.