Suppose a German bank purchases a U.S. Treasury bond. This transaction would be recorded in the:
a. capital account. b. current account.
c. goods trade balance. d. unilateral transfers.
a
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If people expect an inflation rate of 3.3 percent, and the real interest rate is 3 percent, the nominal interest rate equals (approximately)
A) 0.3 percent. B) 8.6 percent. C) 6.3 percent. D) 9.9 percent.
Suppose there was an unexpected increase in aggregate demand. We would expect to observe
A) frictional unemployment to increase. B) the duration of unemployment and the amount of unemployment to decrease. C) higher wages, with the duration of unemployment and the amount of unemployment unchanged. D) a decrease in aggregate demand.
If the price of output decreases, the equilibrium wage of workers who produce that output will ________ and ________ workers will be hired.
A. increase; more B. increase; fewer C. decrease; more D. decrease; fewer
Fitness is a magazine for women about health and exercise. Fitness offers year subscriptions for $12 on their website. Jess, Ania, Mandy, and Chloe exercise together and each enjoy reading Fitness
Jess is willing to pay $10, Ania is willing to pay $16, Mandy is willing to pay $24, and Chloe is willing to pay $12 for a subscription to the magazine. Who will subscribe to the magazine? A) Ania, Mandy, and Chloe B) Jess, Ania, Mandy, and Chloe C) Jess, Ania, and Chloe D) Mandy and Chloe