Which of the following is correct?
A. Current account surplus + capital account surplus = 1
B. Current account surplus ? capital account surplus = 0
C. Current account surplus + capital account surplus = 0
D. Current account surplus ? capital account surplus = 1
Answer: C
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Distinguish between monetary policy instruments and goals
What will be an ideal response?
A monopolistic competitor faces a horizontal demand curve
a. True b. False Indicate whether the statement is true or false
Using a broad definition, a firm would have a monopoly if
A) it produced a product that has no close substitutes. B) it does not have to collude with any other producer to earn an economic profit. C) there is no other firm selling a substitute for its product close enough that its economic profits are competed away in the long run. D) it can make decisions regarding price and output without violating antitrust laws.
When government spending is added to the basic macroeconomic model, the multiplier for G would
a. be higher than the multiplier for autonomous spending. b. be lower than the multiplier for autonomous spending. c. be equal to the multiplier for autonomous spending. d. have no relationship to the autonomous spending multiplier.