Suppose a video craze in the United States makes a particular Japanese-produced video game very popular. This would tend to:

a. affect the U.S. balance of payments but not the balance of trade.
b. reduce any existing balance of trade deficit in the United States.
c. increase the balance of trade deficit of the United States
d. increase the balance of trade surplus of the United States.

c

Economics

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The income effect is the concept that changes in consumption of a good result from changes in purchasing power

a. True b. False Indicate whether the statement is true or false

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Which of the following will NOT shift the aggregate demand curve?

A. a change in government expenditures B. depreciation in the value of the national currency C. a change in the domestic marginal tax rates D. a change in the domestic price level

Economics