Answer: Decrease and Increase
Explanation:
According to the Mundell–Fleming model, in an economy with flexible exchange rates, expansionary fiscal policy will cause the net exports to decrease. Expansionary fiscal policy shifts the IS curve rightwards, as a result BOP surplus created in the economy. So, exchange rate decreases to shift the BOP back to its initial position. As a result of lower exchange rate, exports falls. Hence, net exports decreases.
Expansionary Monetary policy will cause the net exports to increases. Expansionary Monetary policy shifts the LM curve rightwards, as a result BOP deficit created in the economy. So, exchange rate increases to shift the BOP back to its initial position. As a result of higher exchange rate, exports increases. Hence, net exports increases.
Answer:
The answer is: C) The money spent on health care in the United States is not being used effectively.
Explanation:
American citizens spend twice as much as British citizens on health care per year. Even if certain diseases are more common in the US than in Britain, the overall cost of health care is too expensive in the US (100% difference) to be explained by a greater prevalence of just one or two diseases.
The only possible explanation is that the American health care system is not as efficient as the British health care system, therefore health care is more expensive.
Answer:
(d) all costs exclusive of payments to fixed factors of production.
Explanation:
The cost involved in the first three options is considered by economists as accounting cost. Economic cost involves the accounting cost, but it is added to the opportunity cost, which is the remuneration that an economic agent fails to receive for practicing one economic activity and not another.
For example, a business owner has fixed production costs, but it should add to his opportunity cost to be working in that firm rather than another economic activity.
In the global economy, organizations often must localize their products to the language, customs, and culture of many different countries.
An economy is the area of production, distribution, trade and consumption of goods and services. It is generally defined as a social domain emphasizing practices, discourses, and material expressions related to the production, use, and management of scarce resources.
A nation's economy is the wealth it derives from business and industry. The Japanese economy grew by more than 10% every year. 3. Uncountable nouns. Economics is about using the minimum amount of money, time, or other resources necessary to accomplish something and wasting nothing.
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