One of the major reasons why the US trade deficit with China has grown in the last 10 years is that
a. the Yuan is seriously undervalued relative to where it would need to be to lead to a zero trade deficit.
b. the yuan is seriously overvalued relative to where it would need to be to lead to a zero trade deficit.
c. currency markets can never bring trade into balance, even in the long run.
d. US productivity has fallen recently.
e. the U.S. has suffered two sharp recessions.
A
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When the supply of a good is represented by a horizontal line, the burden of a tax is: a. shared equally between the buyers and the sellers. b. placed entirely on the buyers
c. placed entirely on the sellers. d. more on the buyers than on the sellers.
Depending on the size of the multiplier and crowding-out effects, the rightward shift in aggregate demand from a tax cut could be larger or smaller than the tax cut
a. True b. False Indicate whether the statement is true or false