A wealthy English executive decides to buy a large amount of U.S. financial assets. This would contribute to
a. a deficit in the U.S. capital account.
b. a surplus in the U.S. current account.
c. a surplus in the U.S. capital account.
d. a deficit in the total balance of payments.
C
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As a result of heavy spring rains in the Midwest, the corn crop declined sharply. If corn growers experienced an increase in sales revenue, the demand for corn must be
a. price elastic b. price inelastic c. unitary elastic d. perfectly inelastic e. perfectly elastic
Import controls that can help a government maintain a fixed exchange rate, which if left to the foreign exchange market would depreciate, are
a. lowering tariffs and increasing quotas so that more international trade occurs b. raising tariffs and decreasing quotas so that its country's demand for foreign exchange decreases c. requiring exporters to turn over their foreign exchange to the government at a fixed exchange rate d. having the IMF loan the government enough foreign exchange to get through the crisis e. causing a devaluation of the nation's currency so that exports rise and imports fall
The consumption function shows the relationship between
a. planned consumption expenditures and disposable income. b. permanent income and savings. c. business inventory and real GDP. d. aggregate demand and aggregate consumption.
Explain two economic costs, and two human costs of unemployment.
What will be an ideal response?