The sum of the current account, the capital account, and the official reserve transaction account is
A) always positive.
B) always negative.
C) positive when exports are greater than imports.
D) zero.
Answer: D
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The demand for money ________ when the ________
A) increases; nominal interest rate increases B) decreases; price level increases C) increases; supply of money decreases D) remains constant; price level increases E) increases; price level increases
Which component of consumption has a negative or indirect relationship with consumption?
A. Expected future income B. Real income C. Wealth D. Interest rates
When the Fed wishes to decrease the money supply it can
a. ask people to buy more bonds. b. turn additional funds over to the Treasury. c. increase the required reserve ratio. d. decrease the required reserve ratio.
For a non-discriminating monopolist to sell one more unit, it must
A. raise the price of only the last unit produced. B. raise the price of the last as well as all previous units produced. C. lower the price of the last as well as all previous units produced. D. lower the price of only the last unit produced.