AP Macroeconomics Practice Exam 2 ❮ 207- If in a given year the government collects more
money in net taxes than it spends, there would
exist
(A) a current account deficit.
(B) a budget surplus.
(C) a trade surplus.
(D) a budget deficit.
(E) a trade deficit. - Which component of a nation’s balance of pay-
ments recognizes the purchase and sale of physi-
cal and financial assets between nations?
(A) The capital account
(B) The official reserves account
(C) The current account
(D) The trade deficit account
(E) The trade surplus account - An import quota on foreign automobiles is
expected to
(A) increase domestic efficiency and protect
domestic producers at the expense of for-
eign producers.
(B) decrease the price of automobiles and pro-
tect domestic consumers at the expense of
foreign producers.
(C) increase the price of automobiles and pro-
tect domestic producers at the expense of
consumers.
(D) increase the price of automobiles and pro-
tect domestic consumers at the expense of
domestic producers.
(E) decrease domestic efficiency and protect
domestic producers at the expense of domes-
tic autoworkers.
60. When a large increase in aggregate demand has
an even greater increase in real GDP, economists
refer to this as
(A) the balanced budget multiplier.
(B) the money multiplier.
(C) the foreign substitution effect.
(D) the wealth effect.
(E) the spending multiplier.