A central bank's sale of securities from its portfolio will:
A. decrease the size of its balance sheet.
B. only change the composition of its liabilities.
C. only change the composition of its assets.
D. have no impact at all on the balance sheet.
Answer: A
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A country has imports of goods and services at $2,000 billion. The interest paid to the rest of the world is $500 billion. The interest received from the rest of the world is $400 billion. The decrease in official reserves is $10 billion
The government sector balance is $200 billion, savings is $1,800 billion, investment is $2,000 billion, and net transfers is zero. What are net exports? A) $0 B) -$100 billion C) -$200 billion D) $100 billion E) $200 billion
The relationship between price and quantity demanded is said to be;
(a) Positive. (b) Negative. (c) Inverse. (d) Negative or inverse.
What is velocity of money?
A) It is the number of times households convert bonds to money to facilitate economic transactions. B) It is the rate at which money supply is spent to obtain the goods and services that make up GDP during a particular time period. C) It is the rate at which money supply can grow while keeping the price level stable. D) It is the number of times the money supply is spent to obtain the goods and services that make up GDP during a particular time period.
Analysis that is limited to making either purely descriptive statements or scientific predictions is
A. macroeconomics. B. normative economics. C. positive economics. D. microeconomics.