If a U.S. company imports 10 Toyotas from Japan at $15,000 each, and the Japanese company buys airline tickets on a U.S. airline with the money, how does this affect the U.S. balance of payments accounts?

A) Decline in merchandise trade; increase in financial account
B) Decline in financial account; increase in merchandise trade
C) Decline in merchandise trade; increase in services
D) Decline in services; increase in merchandise trade


C

Economics

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Which of the following is true about labor productivity?

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Suppose your nominal income this year is 5 percent higher than last year. If the inflation rate for the period was 3 percent, then your real income was:

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Economics