If the world real interest rate falls, then a country that is an international lender
A) increases the amount of its lending.
B) does not change the amount of its lending.
C) decreases the amount of its lending.
D) None of the above answers is correct because lending might increase, decrease, or not change.
C
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An example of "investment" in computing real GDP using the expenditure approach is the purchase of
A) a new set of tools by an auto mechanic, for use in repairing cars. B) 100 shares of IBM stock. C) a 100 year old house by a married couple. D) computer chips by Dell to put in their personal computers.
If the United States donates footballs to Japan, how is the transaction recorded on the U.S. balance of payments accounts?
A) Decline in merchandise trade; increase in financial account B) Decline in financial account; increase in merchandise trade C) Decline in net unilateral transfers; increase in merchandise trade D) Decline in merchandise trade; increase in net unilateral transfers
The national economic forecast for the next two years prepared by the staff of the Board of Governors is published in the
A) green book. B) beige book. C) blue book. D) Fed book.
Frozen Treats and Dairy Treats are two ice cream firms that are competing with each other. If Frozen Treats announces an upcoming price change next month, it may be signaling to Dairy Treats its intent to engage in ________.
A) a Cournot oligopoly B) tacit collusion C) a Chamberlin oligopoly D) a Stackelberg oligopoly