The U.S. trade deficits of the 1980s and 1990s may represent a problem because they will require
a. higher consumption in the future in order to increase imports.
b. lower consumption in the future in order to repay interest and principal to foreigners.
c. lower consumption in the future in order to finance increased investment.
d. higher budget deficits in the future in order to increase the trade surplus.
b
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Fast Copy is a perfectly competitive firm. The figure above shows Fast Copy's cost curves. If the market price is 2 cents per page, what is Fast Copy's economic profit?
A) zero B) between 0 and $0.50 per hour C) between $0.51 and $1.00 per hour D) more than $1.00 per hour
Price discrimination is the practice of
A) charging different prices for the same good when the price differences arise because of differences in cost. B) charging different prices for the same good when the price differences are not due to differences in cost. C) charging higher prices for brand-named goods and lower prices for generic versions of the goods. D) charging different prices for different qualities of a product.