Net exports plus net capital inflows equal:
A. net capital outflows.
B. the international trade gap.
C. the trade balance.
D. zero.
Answer: D
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The law of demand states that there is a negative relationship between price and quantity demanded, ceteris paribus
Indicate whether the statement is true or false
How would the Fed's sale of government bonds on the open market affect the money supply?
What will be an ideal response?
The interest rate on a bond is calculated as
A) the coupon times the face value. B) the coupon divided by the face value. C) the face value divided by the coupon plus the face value. D) the face value divided by the coupon.
If government spending were to increase we expect that the aggregate demand curve will:
A. shift straight down. B. shift to the right. C. remain unchanged but the economy will move down along the curve to a higher quantity. D. remain unchanged but the economy will move down along the curve to a lower quantity.