Refer to Figure 29-1. Suppose that the U.S. government deficit decreases, causing interest rates in the United States to fall relative to those in the European Union. Assuming all else remains constant, how would this be represented?
A) Demand would increase and the economy moves from A to B.
B) Demand would decrease and the economy moves from B to A.
C) Supply would increase, demand would increase and the economy moves from D to A to B.
D) Supply would decrease, demand would increase and the economy moves from A to D to C.
B
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A U.S. citizen buys some toys made in China for his son. This is an example of a(n) ________
A) transfer payment to the U.S. B) import by China C) transfer payment to China D) export by China
The logical principle for maximization can be stated as follows:
A) Do it if it feels good. B) Do it if the benefit from doing it is greater than the cost of doing it. C) Do it unless it's illegal, immoral, or fattening. D) Do it whenever the marginal benefit equals the marginal cost.