If the Federal Reserve buys $3 billion worth of Japanese yen, $6 billion of euros, and sells $5 billion of British pounds, how does this affect the balance of payments?
A) Falls by $4 billion
B) Rises by $4 billion
C) Rises by $9 billion
D) Falls by $5 billion
B
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The figure above shows supply curves for soft drinks. Suppose the economy is at point a. A movement to point b could be the result of
A) an increase in technology. B) a decrease in the relative price of a soft drink. C) an increase in the relative price of a soft drink. D) an increase in the money price of a soft drink.
Workers employed in jobs that do not utilize their productive talents or experience are considered
a. structurally unemployed b. structurally employed c. discouraged workers d. underemployed workers e. untrainable
When imports and exports for the same type of good are nearly equal:
a. the laws of comparative advantage break down. b. it is an indication that nearly all the trade is intra-industry. c. exports are probably just "finished" in the nation instead of being fully sourced there. d. there is a very low level of intra-industry trade.
The convergence theory is based on the idea of:
A. increasing rates of income per capita. B. decreasing income per capita. C. increasing opportunity costs. D. decreasing marginal returns.