China runs a current account surplus with the United States. Which of the following must be true about China's balance of payments with the United States?
A) Its net exports must be negative. B) It must run a financial account deficit.
C) Its balance of payments must run a deficit. D) Its balance of trade must be in deficit.
B
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In the circular flow model, which of the following is on the buying side in the goods market?
i. firms ii. households iii. federal, state, and local governments A) i only B) ii only C) iii only D) i and ii E) ii and iii
In the real world, wage negotiations typically do not drag on for years:
A. because the company can simply offer the split that would eventually occur if the two sides played all the rounds. B. because neither a company nor employees can afford to not work for that long. C. unless the employees play an ultimatum game using a union to negotiate. D. None of these statements is true.
The discount window is a:
A. lending facility that allows any bank to borrow reserves from the Fed. B. lending facility that banks can use at specified times to borrow reserves needed to meet reserve requirements. C. term used for large banking transactions that are associated with lower risk, and therefore qualify for lower interest rates. D. term used for when large banks offer a lower interest rate for attracting more borrowers.
________ inflation is more stable than __________ inflation, because it excludes food and gasoline prices.
A. Core; headline B. Headline; core C. Core; nominal D. Nominal; core