If a U.S. firm buys stereos from a Japanese firm and the Japanese firm uses the dollars it gets to buy U.S. Treasury bonds, what items are recorded in the U.S. balance of payments accounts?
A. Increase in trade balance; increase in financial account balance
B. Decrease in trade balance; increase in financial account balance
C. Increase in trade balance; decrease in financial account balance
D. Decrease in trade balance; decrease in financial account balance
Answer: B
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Many economists maintain that
a. the aggregate supply curve is nearly horizontal at low levels of real GDP. b. the aggregate supply curve is nearly vertical at very high levels of real GDP. c. any change in aggregate demand will have most of its effect on output when economic activity is low but on prices when the economy is near full employment. d. All of the above are correct.
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Answer the following statement(s) true (T) or false (F)
The marginal cost to society of reducing pollution increases with the increased use of pollution abatement because
A. of the diminishing marginal utility of abatement. B. of the diminishing returns from abatement. C. of the high cost of abatement. D. of the reduced demand for abatement.