If the annual returns from an asset increase, the present value of the asset will
a. not be affected
b. decrease
c. increase
d. increase only if there is also an increase in the rate of interest
e. decrease only if there is also an increase in the rate of interest
C
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You travel to Paris and pay for a $100 dinner with your credit card. How is this accounted for in the balance of payments?
A) current account, French service import B) current account, U.S. good export C) financial account, U.S. asset export D) financial account, U.S. asset import E) financial account, French asset export
Game theory proves most useful for analyzing
A) perfect competition B) monopolistic competition C) oligopoly D) monopoly
Recall the Application about the Fed's response to the collapse of the investment house Bear Stearns as well as its handling of the 2008 financial crisis with respect to other financial institutions to answer the following question(s). According to this Application, the Fed responded to the financial crisis by continuing to develop new programs. One example of this was its announcement that it would now purchase commercial paper, which is the short-term debt of corporations. This is an example of the Fed acting as a:
A. medium of exchange. B. lender of last resort. C. store of value. D. unit of account.
Which of the following statements is NOT an assumption underlying the production possibilities curve?
A) Resources are fully and efficiently employed. B) Technology is fixed. C) Production occurs over some specified time period. D) The amount of resources available for production can be changed quickly.