When income levels in the rest of the world increase, what is the effect on the home TB?
a. It decreases because of expenditure switching.
b. It decreases because of an increase in imports.
c. It increases because of an increase in exports.
d. It increases because of expenditure switching.
Ans: c. It increases because of an increase in exports.
Economics
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Nancy's utility of wealth curve is given in the above figure. She is faced with a risky proposition which yields an income of $50 one-third of the time, $100 one-third of the time, and $150 one-third of the time. Her expected utility is
A) 100. B) 140. C) 150. D) 420.
Economics
Explain how we "read" the three scatter diagrams in Figs. A1.3 and A1.4
What will be an ideal response?
Economics