The problem with the strategy of achieving credibility through reputation is that
A) reputations are rarely credible.
B) reputations lack any commitment.
C) serious costs may be incurred during the period in which reputation is established.
D) rules always have a lower cost than reputations in maintaining credibility.
C
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Net exports is negative if
A) the value of exports exceeds the value of imports. B) the value of imports exceeds the value of exports. C) the tariff payments are included in the value of imported and exported items. D) too much production occurs in the exporting country during the year.
The largest component of current consumption expenditure is ________, while the most volatile component is ________
A) durable goods, nondurable goods B) durable goods, services C) services, durable goods D) services, nondurable goods E) nondurable goods, services