A country with a high level of trade has what relationship to the balance of trade?
a. It must have a trade deficit.
b. It must have a trade surplus.
c. It exports equal its imports.
d. It has no relationship to the balance of trade.
d. It has no relationship to the balance of trade.
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Credit cards are
A) money but are not a large part of the money supply. B) not money. C) money and are the largest part of the money supply. D) not money because they are not made of paper.
A country has a current account surplus if
A) the value of its exports exceeds the value of its imports, assuming net income from foreign assets and net unilateral transfers have a value of zero. B) the value of its net exports of services exceeds the value of its net exports of goods. C) it receives more income from foreign assets than it pays to foreigners for foreign-owned domestic assets. D) its capital inflows exceed its capital outflows.
The fall in value of the British pound relative to the Japanese yen is a(n)
A. floating of the yen. B. appreciation of the pound. C. depreciation of the pound. D. weakening of the yen.
If the wage falls, we know for sure that the firm will produce more in the long run but we cannot be sure whether it will use more or less capital.
Answer the following statement true (T) or false (F)