If an American construction company built a road in Kuwait, this activity would be
A) excluded from U.S. GNP.
B) fully included in U.S. GDP.
C) included in U.S. GNP only for that portion that was attributable to American capital and labor.
D) included in U.S. GDP but not in U.S. GNP.
C
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The data in the table above are the U.S. balance of payments. What is the current account balance?
A) $0 B) $150 billion C) -$100 billion D) -$150 billion
The Fed seeks to promote stability of financial markets because
A) resources are lost when there is not an efficient matching of savers and borrowers. B) they want to lift the self-esteem of workers. C) unstable markets result in increased efficiency. D) Congress directed them to do so by the Employment Act of 1946.
The domestic currency of a country depreciates in value when: a. there is an increase in the foreign currency price of the domestic currency. b. its value falls in relation to another currency
c. the government of the country revaluates the domestic currency. d. its value rises in relation to another currency. e. there is a fall in the domestic demand for foreign currency.
Under the current welfare scheme, the federal government provides state governments with capped block grants to administer state-run welfare programs, but welfare recipients must participate in work activities
a. within six months of receiving welfare or risk losing it b. within two years of receiving welfare or risk losing it c. within five years of receiving welfare or risk losing it d. within ten years of receiving welfare or risk losing it e. never