Based on the following information, what is the balance on the current account?
Exports of goods and services = $5 billion
Imports of goods and services= $3 billion
Net income on investments = -$2 billion
Net transfers = -$2 billion
Increase in foreign holdings of assets in the United States = $4 billion
Increase in U.S. holdings of assets in foreign countries = -$1 billion
A) -$2 billion B) $1 billion C) $3 billion D) $4 billion
A
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A decrease in the money supply:
a. lowers the interest rate, causing a decrease in investment and a decrease in GDP. b. lowers the interest rate, causing a decrease in investment and an increase in GDP. c. raises the interest rate, causing an increase in investment and a decrease in GDP. d. raises the interest rate, causing an increase in investment and an increase in GDP. e. raises the interest rate, causing a decrease in investment and a decrease in GDP.
Monopolistic competition is different from perfect competition in that every manufacturer
a. has a small monopoly, and differentiates the product. b. takes the product quality as given, and chooses price. c. takes output level as given, but must choose price. d. differentiates product, but cannot advertise successfully.
Which of the following is a source of information that helps consumers acquire information about the quality of a good or service?
a. brand names b. franchising c. consumer ratings magazines d. all of the above
Based on the simple spending multiplier, which of the following will increase real GDP?
a. Decreased government spending b. Increased business taxes c. Increased investment spending d. Decreased consumption spending