Which of the following would be recorded in the U.S. goods export account?
A. Harry, an American citizen, spends 1,000 francs on vacation in the south of France.
B. A machine shop in Ohio purchases a grinder made in New Jersey.
C. Martha receives a $50 dividend check on stock she owns in a business in Germany.
D. France purchases a new jet fighter aircraft from the Boeing Company in the United States.
Answer: D
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Assume that the central bank lowers the discount to increase the nation's monetary base. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the real exchange rate and monetary base in the context of the Three-Sector-Model? State your answer after the macroeconomic system returns to complete equilibrium. Assume the nominal exchange rate
is stated as: (Domestic currency per foreign currency). a. The real exchange rate rises and monetary base rises. b. The real exchange rate rises and monetary base falls. c. The real exchange rate and monetary base fall. d. The real exchange rate and monetary base remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
Which of the following will not cause the demand for product K to change?
A. A change in the price of close-substitute product J. B. An increase in incomes of buyers of product K. C. A change in the price of product K. D. A change in consumer tastes for product K.
A photograph processing machine company requiring customers who buy a processing machine to purchase chemicals and photographic paper from it is an example of
A) bundling. B) a requirement tie-in sale. C) quantity discrimination. D) a two-part tariff.
Other things constant, the price elasticity of demand for a product will be smaller (more inelastic) if:
a. people spend a large share of their income on the product. b. people spend an insignificant share of their income on the product. c. the population in the market area is large. d. there are many good substitutes for the product.