The balance of payments ____
a. b and e
b. is always zero
c. with some nations is different than it is with others
d. is negative when the nation runs a trade deficit
e. can only be expanded when the government has foreign exchange reserves
b
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The presence of discouraged workers
A. may cause the official unemployment rate to understate the true amount of unemployment. B. reduces the size of the labor force but does not affect the unemployment rate. C. may cause the official unemployment rate to overstate the true amount of unemployment. D. increases the size of the labor force but does not affect the unemployment rate.
How does the real interest affect households' decisions about saving?
What will be an ideal response?
When a party to a transaction lacks relevant information:
A. other parties will voluntarily share this information truthfully. B. they will not make the deal without complete information. C. they sometimes seek out information in ways that are not obvious. D. they always make the deal blindly.
If the exchange rate of Euros to American dollars was €1.00 = $1.00 yesterday and today is €1.00 = $1.05, then:
(a) The euro appreciated in value relative to the American dollar. (b) The euro depreciated relative in value to the American dollar. (c) All things being equal, imports from the Eurozone to America are more expensive today than they were yesterday. (d) Both (a) & (c) are correct.