Investment income is part of the capital account of the balance of payments.
Answer the following statement true (T) or false (F)
False
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Refer to Figure 7-2. The efficient equilibrium price is
A) $60. B) $50. C) $40. D) < $40.
The abnormal net income model defines the market value of a firm
A) is its book value minus the present value of expected economic profits. B) is its book value plus the present value of expected economic profits. C) is its book value divided by the present value of expected economic profits. D) is its book value multiplied by the present value of expected economic profits.
The majority of new jobs created in the service sector of the U.S. economy have been in the information sector
a. True b. False Indicate whether the statement is true or false
When the Fed buys government securities, it:
A. lowers the cost of borrowing from the Fed, encouraging banks to make loans to the general public. B. raises the cost of borrowing from the Fed, discouraging banks from making loans to the general public. C. increases the amount of excess reserves that banks hold, encouraging them to make loans to the general public. D. increases the amount of excess reserves that banks hold, discouraging them from making loans to the general public.