Ceteris paribus, how does an expansion in the United States affect U.S. net exports?
What will be an ideal response?
As GDP increases in the United States due to the expansion, the incomes of households rise. Households respond by increasing their purchases of goods and services. Some of the increase in purchases includes domestic goods and services; some of the increase includes foreign produced goods and services. This essentially raises imports. Assuming that exports do not change, net exports will fall.
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A positive statement is prescriptive—it prescribes what should be done
a. True b. False Indicate whether the statement is true or false
Medicare
A) subsidizes the care of older people, which gives them NO incentive to consume more medical services. B) subsidizes the care of older people, which gives them an incentive to consume more medical services. C) subsidizes the care of young people, which gives them an incentive to consume less medical services. D) subsidizes the care of middle aged people, which gives them an incentive to consume more medical services.