If actions by the President and Congress reduce the federal government budget deficit, then interest rates will _____, the U.S. dollar will _____, and the foreign trade deficit will _____
a. increase; appreciate; increase
b. increase; depreciate; increase
c. decrease; appreciate; decrease
d. decrease; depreciate; increase
e. decrease; depreciate; decrease
e
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If a purely competitive firm is producing where price exceeds marginal cost, then:
A. the firm will fail to maximize profit, but resources will be efficiently allocated. B. the firm will fail to maximize profit and resources will be overallocated to the product. C. the firm will fail to maximize profit and resources will be underallocated to the product. D. resources will be underallocated to the product, but the firm will maximize profit.
Which of the following is the basic equation underlying aggregate expenditures?
A. MV = PQ B. AS = AD C. Saving = Income - Consumption D. Ca + Ig + Xn + G = GDP