Which of the following is (are) correct? In the classical system, the suppliers of bonds were the
a. government which always sold bonds to finance a new project.
b. firms which financed all investment expenditures by selling bonds.
c. government which might sell bonds to finance spending in excess of tax revenues.
d. Both b and c.
D
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The primary liabilities of a commercial bank are
A) bonds. B) mortgages. C) deposits. D) commercial paper.
Which of the following would not be a part of the merchandise trade balance?
a. Exports of consumer durables b. Merchandise imports c. International freight costs d. Computer hardware exports e. Sale of domestically produced cars to foreigners
James 16 wagons, 32 tricycles. Lucy 18 wagons, 24 tricycles Table 2-6 shows the output per week of two people, James and Lucy. They can either devote their time to making bracelets or making necklaces. 3) Refer to Table 2-6. Which of the following statements is true?
A) Lucy has a comparative advantage in making tricycles and James in making wagons. B) James has a comparative advantage in making both products. C) Lucy has a comparative advantage in making both products. D) Lucy has a comparative advantage in making wagons and James in making tricycles
When a U.S. firm builds a manufacturing plant in another country, this would be an example of a:
A. Trade flow B. Labor flow C. Capital flow D. Information flow