Which of the following statements is TRUE about the role that service exports and imports have in the balance of payments?
A) Service exports and imports are not included in the balance of payments because it is impossible to transport a service to another country.
B) Service exports and imports are included in the balance of payments in the labor account.
C) Service exports and imports are included in the balance of payments in the official reserve transactions account.
D) Service exports and imports are included in the balance of payments in the current account.
D
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The "Buy American" provision in the 2009 stimulus package required that stimulus money be spent only on U.S.-made goods, effectively acting as a quota of zero imports when stimulus money was being spent
The "Buy American" provision would ________ consumer surplus and ________ producer surplus for industries that produced protected products in the United States. A) decrease; increase B) decrease; decrease C) increase; increase D) increase; decrease
For a perfectly competitive firm, the marginal revenue product is equal to the marginal product multiplied by the output price
a. True b. False Indicate whether the statement is true or false
Suppose nominal GDP in Mexico decreased by 10% in 2020. Given this information, we know with certainty that
A. real GDP in Mexico decreased in 2020. B. the aggregate price level in Mexico decreased in 2020. C. both the aggregate price level AND real GDP decreased in Mexico in 2020. D. more information is needed to answer this question.
The "direct effect" of an increase in the money supply is to
A. increase aggregate supply as producers anticipate higher future profits. B. decrease the rate of inflation. C. increase aggregate demand as people spend their excess money balances. D. increase aggregate demand as interest rates fall and investment spending increases.