If a country's imports of goods and services exceeds its exports, ________.
A. GDP equals the sum of consumption, investment, and government purchases
B. net exports are positive
C. GDP is less than the sum of consumption, investment, and government purchases
D. GDP exceeds the sum of consumption, investment, and government purchases
Answer: C
Economics
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When the Fed raises the federal funds rate, the exchange rate ________ and net exports ________
A) increases; decreases B) does not change; decreases C) does not change; does not change D) decreases; decreases E) increases; increases
Economics
Goldie is indifferent between option A, which gives her $9,000 for sure, and option B, which gives her $3,000 with probability 1/3 or $18,000 with probability 2/3. Goldie's cost of risk for option B is
A) zero. B) $1,000. C) $3,000. D) $4,000.
Economics