All of the following are possible private-sector adjustments to an increase in the government's budget deficit except
A) increasing private savings.
B) decreasing investment.
C) decreasing expenditures on transfer programs.
D) increasing the trade deficit by increasing imports and/or decreasing exports.
C
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Which of the following is correct about comparative advantage?
A) Some countries will have a comparative advantage in everything. B) A country has a comparative advantage in the production of a good if it can produce the good at lower opportunity cost than any other country. C) Having a comparative advantage without an absolute advantage is impossible. D) A comparative advantage in a good means that the country can produce more of the good than any other country. E) None of the above answers is correct.
Capital inflows in the balance of payments accounts include
a. purchases of financial assets by U.S. residents. b. direct investments in foreign countries. c. indirect investments in foreign countries. d. purchases of U.S. government bonds by foreigners.