Balance-of-payments accounts are out of balance
a. only when imports are greater than exports.
b. when exports are either greater or less than imports.
c. only when exports are greater or less than imports over a sustained period.
d. never.
d. never.
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The certainty equivalent of a gamble is negative when tastes are risk loving.
Answer the following statement true (T) or false (F)
Which of the following statements is true?
A) A rational economic agent is not likely to optimize. B) Cost-benefit analysis can also be used for normative economic analysis. C) Cost-benefit analysis does not yield the same result as optimization analysis. D) The net benefit of an option that costs $50 and provides a benefit of $100 is equal to $150.
Which of the following would likely cause the dollar to depreciate?
a) Rising interest rates in the United States. b) An increase in United State citizens' preference for foreign goods. c) Income growth of the United States lagging behind that of other countries. d) Lower inflation in the United States.
Suppose the Fed purchases $100 million of U.S. securities from security dealers. If the reserve requirement is 20 percent, the currency holdings of the public are unchanged, and banks have zero excess reserves both before and after the transaction, the total impact on the money supply will be a:
A. $100 million decrease in the money supply. B. $100 million increase in the money supply. C. $200 million increase in the money supply. D. $500 million increase in the money supply.