Suppose the G8 nations decide that the dollar is too strong (high in value) relative to the yen. These nations might:
A. use official reserves of yen to buy dollars.
B. use official reserves of dollars to buy yen.
C. encourage Japan to print more yen.
D. encourage the United States to increase interest rates.
B. use official reserves of dollars to buy yen.
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When the government's outlays exceed its tax revenue, the national debt
A) shrinks thanks to the budget surplus. B) grows to finance the budget deficit. C) shrinks thanks to the budget deficit. D) grows to finance the budget surplus. E) does not change because it has nothing to do with government outlays and tax revenue.
Compared to workers in richer countries, workers in developing countries have
a. lower productivity and lower wages. b. higher productivity and higher wages. c. higher productivity but lower wages. d. the same productivity but lower wages.