The persistent U.S. trade deficit with Japan is
a. surprising because one would expect that bilateral trade between two countries with flexible exchange rates would be in balance.
b. surprising because the Japanese are high cost producers of many goods that are purchased in large quantities by U.S. consumers.
c. not surprising because there is no reason why bilateral trade between two countries should be in balance.
d. proof that the trade practices of the Japanese are unfair toward the United States.
C
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Trend refers to
A) increases but not decreases of a variable. B) the difference between the maximum value of the variable and the minimum value of the variable. C) a general tendency for a variable to rise or fall. D) the scale used on the x- and y-axes. E) decreases but not increases of a variable.
According to the natural rate hypothesis, the unemployment rate should equal 0 percent in the long run
a. True b. False Indicate whether the statement is true or false