Which of the following is a deficit item on the balance of payments?
A. exports of merchandise
B. purchases of foreign assets
C. foreign tourist dollars spent domestically
D. sales of gold to foreigners
Answer: B
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To convert the nominal interest rate to the real interest rate, we
A) divide the nominal interest rate by the inflation rate. B) multiply the nominal interest rate by the inflation rate. C) subtract the inflation rate from the nominal interest rate. D) add the inflation rate to the nominal interest rate. E) subtract the nominal interest rate from the inflation rate and then multiply by 100.
A country opens up to trade and imports clothing. In the clothing market, surplus has been redistributed from
A) producers to consumers. B) consumers to producers. C) government to consumers. D) producers to government.
Dumping occurs when a foreign firm sells its exports at a lower price than it costs to produce them
Indicate whether the statement is true or false
A tariff is a
A) tax imposed on domestic producers of export goods. B) legal limit on the amount of a good that can be imported. C) tax imposed on imported goods. D) legal limit on the amount of a good that can be produced by foreign owners of a firm located in a host country.