Which of the following will occur in a small country with a high marginal propensity to import?
A) Changes in government spending will cause large changes in output.
B) Changes in government spending will cause large changes in the trade balance.
C) A depreciation will cause only small changes in the trade balance.
D) There is no combination of policies that can eliminate the trade deficit.
E) all of the above
B
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Using money as a medium of exchange:
a. requires people to match goods wanted with goods available. b. inhibits economic transactions. c. reduces the need for barter in the economy. d. reduces the need for a banking system. e. reduces the range of feasible exchanges in the economy.
Since the demand for labor depends upon the demand for the final product, we say that labor is
A) a derived demand. B) an "inverse" demand. C) a positive demand. D) a reverse demand.