When current account deficits are used to finance investment spending, such deficits may be self-correcting because
A) they promote more responsible government policies.
B) the resulting increase in the capital stock over time shifts the output supply curve to the right.
C) the resulting increase in the capital stock over time shifts the output demand curve to the right.
D) the resulting increase in national indebtedness increases labor demand.
B
Economics
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Which of the following correctly identifies a problem with price regulation?
A) It minimizes social surplus. B) It minimizes consumer surplus. C) Sellers do not have an incentive to cut costs. D) Government intervention increases deadweight loss.
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What answers are required before the notions of horizontal and vertical equity become meaningful?
What will be an ideal response?
Economics