An example of a transaction that will be a surplus item on the U.S. balance of payments is
A) a U.S. resident purchasing French wine.
B) a French subsidiary's plant in New Jersey purchasing parts from the main plant in Paris.
C) a gift of wheat from the U.S. government to India.
D) a tourist from Germany buying a ticket to fly from New York to Chicago on American Airlines.
Answer: D
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Empirical studies suggest that as real GDP per person increases the level of pollution:
A. decreases. B. remains constant. C. first increases then decreases. D. increases.
________ is the relative ease and speed with which an asset can be converted into a medium of exchange
A) Efficiency B) Liquidity C) Deflation D) Specialization
The argument that an increase in aggregate demand, as a result of an increase in government purchases, will be offset by increases in savings (less current consumer spending) for future taxes is called:
a. the crowding out effect b. the Ricardian equivalence theorem c. the budget deficit effect d. the budget surplus effect
In 1913, Congress established the Federal Reserve system with the intention of putting an end to
A) high interest rates. B) high unemployment rates. C) inflation. D) bank panics.