In practice, the size of the multiplier is about
A. 1.
B. 1.4.
C. 2.5.
D. 3.
Answer: B
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Which of the following would not be counted in the U.S. BOP current account?
a. Helen, an American oil engineer, is a paid adviser to Middle Eastern countries in the area of petroleum extraction. b. General Motors Corporation owns buildings that are situated in Mexico. c. France purchases a new jet fighter aircraft from the Boeing Company in the U.S. d. Martha receives a $50 dividend check on stock she owns in a business in Germany. e. A wealthy Italian purchases numerous antiques in the United States for his villa.
Expenditures by households on education are included in the consumption component of GDP
a. True b. False Indicate whether the statement is true or false
Firms in Thailand that had borrowed dollars while the baht was pegged to the dollar faced interest payments that were ________ than they had planned while the Thai government continued trying to defend the peg, because the baht had been pegged ________ the equilibrium exchange rate for the baht.
A) higher; above B) higher; below C) lower; above D) lower; below
If fluctuations in economic activity emanate from the supply side, higher rates of inflation will be associated with higher rates of unemployment, and lower rates of inflation will be associated with lower rates of unemployment.
Answer the following statement true (T) or false (F)