Refer to the above table. Suppose the transactions in the table are added to a balance of payments account that is already in balance. What will have to take place to keep the balance of payments in balance?
A) Nothing will have to be done as the accounts are in balance.
B) Nothing will have to be done as the accounts are in equilibrium.
C) The U.S. government will have to make official reserve transactions equal to $10,000.
D) Foreign governments will have to make official reserve transactions equal to -$10,000.
D
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The marginal propensity to consume (MPC) is equal to
A) 1 + MPS. B) 1 - MPS. C) MPS + 1. D) MPS - 1.
Define the following terms. Give a complete and precise definition in one sentence
a. total utility b. marginal utility c. consumer's surplus d. "law" of demand
What is the money multiplier? What are the factors that can affect the size of the money multiplier?
Many people fall victim to the gambler’s fallacy, even when they’re not gambling. Which of the following is an example of such a situation?
a. waiting to purchase a car until a dealership holds its annual year-end sale b. buying a puppy of the same breed as the dog you had growing up because you liked your childhood dog so much c. expecting that a couple will have a baby boy next because all their other children are girls d. driving cautiously because you have a perfect driving record that you want to maintain