Which of the following statements is TRUE about the role that service exports and imports have in the balance of payments?
A. Service exports and imports are included in the balance of payments in the labor account.
B. Service exports and imports are included in the balance of payments in the current account.
C. Service exports and imports are included in the balance of payments in the official reserve transactions account.
D. Service exports and imports are not included in the balance of payments because it is impossible to transport a service to another country.
Answer: B
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A) results in a fall in the cost of borrowing. B) results in a fall in the amount of interest accumulated on a loan. C) results in a fall in the quantity of credit demanded. D) results in an increase in the number of potential debtors.
An indifference curve shows _____
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In long-run equilibrium, a firm in perfect competition has no economic profit
a. True b. False Indicate whether the statement is true or false
Figure 10.7 A Reduction in the Proportional Tax Rate
What will be an ideal response?