The current account in the BOP records:
a. all money flowing between countries.
b. a nation's yearly exports and imports of goods and services.
c. only the transactions involving capital goods in international trade.
d. only the transactions involving consumer goods in international trade.
e. only those goods and services purchased on credit in international transactions.
b
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An upward shift in the Fed's reaction function is equivalent to:
A. an increase in the Fed's long-term target for inflation. B. a decline in the Fed's long-term target for inflation. C. a downward shift of short-run aggregate supply D. an upward shift of short-run aggregate supply
Based on the table and information in the previous question, which of the following is TRUE?
A) George prefers to make $15,000 with certainty than make the investment. B) George prefers making the investment than to make $15,000 with certainty. C) George is indifferent between making $15,000 with certainty and making the investment. D) As the investment has risk George should not make it under any circumstances.
Until Congress began to periodically raise benefit levels to adjust for inflation, the first recipients of Social Security checks:
A. lost value over time, because the payments were not adjusted for inflation. B. received a fixed amount that caused their real income to decline. C. grew poorer over time, because the payments were nominal amounts. D. All of these statements are true.
The basic Keynesian model is built on the key assumption that:
A. prices are prevented from changing frequently by government regulations. B. firms meet the demand for their products at preset prices. C. firms price their products so as to see a preset quantity of output. D. menu costs are not significant.