Although it declined in the first quarter of 2009, the United States was still running a trade deficit, which means that the United States would have to
A) increase the money supply. B) decrease the value of its financial account.
C) devalue the dollar. D) sell some of its assets to foreigners.
D
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Sandra consumes two goods–tea and coffee. Her demand for tea is inelastic while her demand for coffee is elastic. If there is an increase in the price of both tea and coffee, ________
A) Sandra's expenditure on both tea and coffee is likely to increase B) Sandra's revenue on both tea and coffee is likely to decrease C) Sandra's expenditure on tea will increase and her expenditure on coffee will decrease D) Sandra's expenditure on coffee will increase and her expenditure on tea will decrease
Assume a fixed demand for money curve and the Fed decreases the money supply. In response, people will:
a. sell bonds, thus driving up the interest rate. b. sell bonds, thus driving down the interest rate. c. buy bonds, thus driving up the interest rate. d. buy bonds, thus driving down the interest rate.