The effect that a gift given to a U.S. citizen from a foreign resident will have on the balance of payments is to
A) increase the current account balance.
B) have no effect on the balance of payments if the gift was made in the U.S.
C) have no effect on the balance of payments if the gift was made by a foreign country.
D) decrease the balance of payments.
A
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Economic profit is:
a. total revenues minus variable costs. b. total revenues minus private costs. c. total revenues minus explicit costs. d. total revenues minus total costs.
Suppose a banking system has $120 million in deposits, a required reserve ratio of 20 percent, and total bank reserves for the whole system of $100 million. Then the potential increase in deposit creation for the whole system is equal to
A. $0. B. $76 million. C. $380 million. D. $120 million.
Marginal revenue is the change in
A. Average revenue when output is changed. B. Total revenue when output is changed. C. Total revenue when price is changed. D. Average revenue when price is changed.
If the expenditures multiplier in an economy is 3 and the government wants to increase aggregate demand by $12 billion at all price levels, it should cut taxes by
A. $9 billion. B. $12 billion. C. $6 billion. D. $3 billion.