If the Irish pound declines in value against other major currencies, which of the following happens?
a. The Irish trade deficit will increase.
b. The Irish trade deficit will be unaffected.
c. The Irish trade deficit will decrease.
d. Irish products will become more expensive to foreigners.
e. Foreign goods will become cheaper in Ireland.
C
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To the extent that a direct expenditure offset results from an expansionary fiscal policy,
A) the fiscal policy will not be discretionary. B) the time lags associated with the implementation of fiscal policy will shorten. C) the stimulative effect will be less than anticipated. D) the stimulative effect will be more than anticipated.
A manager invests $400,000 in a technology that should reduce the overall costs of production. The company managed to reduce their cost per unit from $2 to $1.85 . All else equal, if the firm continues its production in the same economic environment, the firms accounting profits should
a. increase b. decrease c. stay the same d. does not affect profits