Which of the following is a deficit item on the U.S. balance of payments accounts?
A) A U.S. firm sells a product to a Mexican firm.
B) An Italian tourist in Miami purchases a beach ball.
C) A Spaniard buys 100 shares of Ford stock.
D) A U.S. resident buys a smartphone in Japan.
Answer: D
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Which statement(s) is (are) consistent with a positive relationship between inflation and the output gap?
A) If output rises above its potential level, the unemployment rate falls and firms will raise wages and prices more rapidly. B) In the short run, the AS curve is upward sloping. C) Through Okun's law, the negative relationship between the output and unemployment gaps allows the modern Phillips curve to be translated into the AS curve. D) all of the above E) none of the above
The balance of payments is
A) a summary record of the financial transactions of a country's government with foreign governments. B) a summary record of a country's imports and exports of goods with foreign residents and governments. C) a summary record of a country's economic transactions with foreign residents and governments. D) a summary record of a country's purchases and sales of goods and services in the world market.
According to your text, the annual cost of regulation (federal, state and local) in the United States is estimated to exceed ________ per year
A) $500 million B) $900 million C) $50 billion D) $1 trillion
The "negative-amortization" mortgage typically converts later to a
A. traditional mortgage with a higher payment. B. "exotic" mortgage with a lower payment. C. new "negative-amortization" mortgage with an even lower payment. D. traditional mortgage with a lower payment.