"When the balance of payments sums to zero is the only situation in which there is an equilibrium." Do you agree or disagree? Why?
What will be an ideal response?
Disagree. The balance of payments are always in balance because of double-entry bookkeeping. The methods used to pay for imports may or may not be an equilibrium. Some ways of financing international transactions can persist indefinitely while others cannot.
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The real price trendline for non fuel primary commodities from 1960-2005 has been
(a) Unchanged (b) Steadily increasing (c) Steadily decreasing (d) First decreased and then increased.
If asset A is a 30-year U.S. Treasury bond yielding 9 percent and asset B is a 30-year corporate bond issued by General Motors that also yields 9 percent, risk averse investors would
A) prefer asset A. B) prefer asset B. C) be indifferent between the two assets. D) differ according to their rate of time preference.
The Consumer Financial Protection Bureau is part of the
A) Treasury Department B) Federal Reserve System C) Justice Department D) Commerce Department
Which of the following is a likely impact of international migration?
A. The country from which workers migrate out to other countries gains welfare as long as remittances are small. B. The workers remaining in the country after emigration lose welfare. C. The receiving country as a whole gains. D. The native workers in the receiving country gain welfare.