What effect does the following transaction have on the U.S. balance of payments?(Choose the proper debit and credit entries.)U.S. residents purchase Mexican products and pay for them with Mexican pesos
a. Debit the U.S. financial account; credit the U.S. current account.
b. Credit the U.S. financial account; debit the U.S. current account.
c. Debit the U.S. financial account; credit the U.S. financial account.
d. Credit the U.S. financial account; debit the U.S. financial account.
e. Credit the U.S. financial account; debit the U.S. net errors and omissions account.
.B
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The Volcker Disinflation (1980-1986 ) was costly in terms of output and unemployment. Would it not have been better to reduce inflation with a positive supply shock, rather than a negative demand shock?
What will be an ideal response?
The burden of a tax placed on buyers is:
A. shared between buyers and sellers. B. the buyers' incidence. C. the sellers' incidence. D. higher if the tax is placed on buyers.
In the classical theory of the employment an increase in the rate of interest will ______ savings and ________ investment.
Fill in the blank(s) with the appropriate word(s).
Most favored nation (MFN) status means that a country treats another country
A) better than its other trading partners. B) the same as its other trading partners. C) worse than its other trading partners. D) any way it chooses since it is the "most favored nation."