It is possible for every nation to have BOP surpluses
Indicate whether the statement is true or false
FALSE
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Many primary products from developing countries are hurt by
a. regional trade agreements b. tariff escalation c. effective protection d. Part IV of the GATT e. all of the above
If the Fed decreases the required reserve ratio at a time when banks are holding no excess reserves, the Fed is: a. forcing banks to increase the money supply
b. forcing banks to decrease the money supply. c. making it possible for banks to increase the money supply but not forcing them to do so. d. making it possible for banks to decrease the money supply but not forcing them to do so. e. conducting open market operations but not changing the money supply.
An economy in which output has decreased and prices have increased would suggest that there has been a:
A. negative demand side shock. B. negative supply side shock. C. positive demand side shock. D. positive supply side shock.
The ABC Corporation earned a real rate return of 4.5 percent on an investment. In the economy, the nominal rate of interest was 6 percent and the rate of inflation was 3 percent. We can conclude that
A. the investment was profitable. B. the investment was unprofitable. C. the real rate of interest was 9 percent. D. the real rate of interest was 1.5 percent.