An American buys a Japanese car, paying by writing a check on an account with a bank in New York. How would this be accounted for in the balance of payments?
A) current account, a Japanese good import
B) current account, a U.S. good import
C) financial account, a U.S. asset import
D) financial account, a U.S. asset export
E) a current account as a U.S. good import and a financial account, a U.S. asset export
E
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All of the following are examples of residential investment spending except
A) the purchase of a new apartment building by a property management company. B) Sandra purchases her childhood home from her parents. C) the purchase of a new home by the MacGregor family. D) Tobias purchases a new duplex and plans to live in one half and rent the other half to his brother Dorian.
In the banking system today, the reserves banks hold against their deposit liabilities must take one of two forms. They are
A) vault cash and deposits at the Fed. B) vault cash and checkable deposits. C) currency in circulation and checkable deposits. D) gold and vault cash.
If the cross-price elasticity is positive, we can conclude that the two goods are ______ because the price of one good and the demand for the other move in the same direction.
a. complements b. substitutes c. counterparts d. identical
Which of the following is characteristic of a monopolistically competitive firm?
A. The firm faces an upward-sloping demand curve. B. The firm faces an inelastic demand curve. C. The firm faces a horizontal demand curve. D. The firm produces a differentiated product.