Following the balance of payments ________.
A. allows us to track changes in trade flows, but not financial assets
B. is useful for understanding a country's relationships with its trading partners
C. is not helpful because the balance of payments is always zero
D. helps predict when an economy will be in a recession
Answer: B
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If you are willing to purchase a house for $300,00 . and you purchase the house for $275,000 . this transaction will generate:
a. There is no surplus created b. $25,00 . worth of seller surplus and unknown amount of buyer surplus c. $10,00 . worth of buyer surplus and $15,00 . of seller surplus d. $25,00 . worth of buyer surplus and unknown amount of seller surplus
Assume the nominal dollar-per-euro ($/€) exchange rate appreciates by 2%, U.S. prices rise by 5% and Euro-Area prices rise by 3%. By approximately how much does the real exchange rate change?
a. 2% b. There is no change. c. 3% d. 4% e. 5%
According to the graph shown, if the government decides to increase its spending, it is most likely at point:
A. C B. D C. B D. It's impossible to tell without more information.
From 2009 through 2012, the long-term real interest paid by the safest U.S. corporations fell from 4 percent to 2 percent. During that same period, the federal funds rate was roughly constant at 0.25 percent a year. A fall in the federal funds rate _______ the supply of bank loans and the supply of loanable funds, and _______ the equilibrium real interest rate.
Fill in the blank(s) with the appropriate word(s).