The difference between the current account balance and net exports is
A. the capital account.
B. income receipts from foreign assets.
C. net unilateral transfers plus net factor payments from abroad.
D. adjustments in net foreign assets.
Answer: C
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How will an interest rate decrease in the United States affect equilibrium in the foreign exchange market?
A) The equilibrium exchange rate will increase, and the equilibrium quantity of dollars traded will increase. B) The equilibrium exchange rate will increase, and the equilibrium quantity of dollars traded cannot be determined. C) The equilibrium exchange rate cannot be determined, and the equilibrium quantity of dollars traded will increase. D) The equilibrium exchange rate will decrease, and the equilibrium quantity of dollars traded cannot be determined.
Based on Figure 4.1, food is:
A) a normal good. B) an inferior good, but not a Giffen good. C) a Giffen good. D) none of the above
The marginal revenue product curve shifts when
A) wages fall. B) there is a change in the product price workers are producing. C) wages rise. D) the wages paid exceed the price.
It is possible for the U.S. to gain from trade with Germany even if it takes U.S. workers fewer hours to produce every good than it takes German workers
a. True b. False Indicate whether the statement is true or false