The current account records all transactions below EXCEPT for
A) net exports of goods and services.
B) net interest income.
C) net foreign investment.
D) net transfers.
C
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Use the following graph to answer the next question. 
If the industry were perfectly competitive, then the market price would be ________.
A. $20, which is lower than what the price would have been if the industry were a pure monopoly B. $25, which is lower than what the price would have been if the industry were a pure monopoly C. $25, which is higher than what the price would have been if the industry were a pure monopoly D. $20, which is higher than what the price would have been if the industry were a pure monopoly
A currency drain occurs because people want to hold some of their money as currency rather than as deposits
Indicate whether the statement is true or false
The characteristic that distinguishes a monopolistically competitive market from a perfectly competitive market is the:
a. ease of entry. b. number of firms operating in the market. c. degree of government regulation in the activities of the firms. d. differentiation of products. e. extent of market share of each firm.
Assume that the central bank sells government securities in the open market. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the real GDP and reserve-related (central bank) transactions in the context of the Three-Sector-Model? State your answer after the macroeconomic system returns to complete equilibrium
a. Real GDP remains the same and reserve-related (central bank) transactions becomes more negative (or less positive). b. Real GDP falls and reserve-related (central bank) transactions remains the same. c. Real GDP and reserve-related (central bank) transactions remain the same. d. Real GDP rises and reserve-related (central bank) transactions remains the same. e. There is not enough information to determine what happens to these two macroeconomic variables.