An unfavorable balance of trade occurs when:
a. exports equal imports.
b. the balance of payments balances.
c. the current and capital account in the BOP are equal.
d. the value of the exports of goods exceeds the value of the imports of goods.
e. the value of the exports of goods is less than the value of the imports of goods .
QUESTION 2The marginal propensity to consume (MPC) is computed as the change in consumption divided by the change in:
a. GDP.
b. disposable personal income.
c. saving.
d. none of these.
QUESTION 3A favorable balance of trade occurs when:
a. exports equal imports.
b. the balance of payments balances.
c. the current and capital account in the BOP are equal.
d. the value of the exports of goods exceeds the value of the imports of goods.
e. the value of the exports of goods is less than the value of the imports of goods .
QUESTION 4The national debt is best described as the:
a. amount by which this year's federal spending exceeds its taxes.
b. value of all U. S. Treasury bonds owned by foreigners.
c. sum of all federal budget deficits, past and present.
d. percentage of GDP needed to finance a country's investment.
QUESTION 5The slope of the consumption function is called the:
a. autonomous consumption rate.
b. marginal consumption rate.
c. average propensity to consume.
d. marginal propensity to consume.
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