An American consumer buys a French luxury product in New York. In the U.S. balance of payments accounts, this transaction directly appears in
A) the official settlements account.
B) the imports part of the current account.
C) the net transfers part of the current account.
D) the capital and financial account.
B
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Economists are skeptical about the degree to which predatory pricing is used because
a. "price wars" are rarely observed in actual markets. b. when used as a warning to potential rivals, predation has minimal value. c. buy-outs are less costly than predation and have no offsetting disadvantages. d. firms can easily counter predation by "laying low" or borrowing funds.
Other things equal, the wage rate will be higher in a job that requires close monitoring by a supervisor since few individuals are eager to work in such an environment
a. True b. False
During the contraction phase of the business cycle,
a. prices fall relative to costs, reducing profit margins. b. costs fall relative to prices, reducing profit margins. c. prices fall relative to costs, increasing profit margins. d. costs fall relative to prices, increasing profit margins.
Classical macroeconomists assert that "saving" is the same as "not spending at all"
Indicate whether the statement is true or false