Answer the following statements true (T) or false (F)
1. U.S. exports to Japan create a supply of dollars and a demand for yen in the foreign-exchange market.
2. People will have to exchange their currency for another only when they do exporting or importing.
3. The current account portion of a nation's balance of payments statement includes net investment income.
4. The U.S. often has a significant surplus in services trade, even though it has a deficit in goods trade.
5. The flow of payments for purchases and sale of financial assets is included in the current account balance of a nation.
1. F
2. F
3. T
4. T
5. F
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The greater the number of buyers and sellers with access to securities markets, the
A) higher the true equilibrium price will be. B) higher the yields on securities will be. C) lower the yields on securities will be. D) closer securities prices will be to the true equilibrium price.
Which of the following does not lessen intergovernmental competition?
a. direct intergovernmental grants b. direct regulations c. the decline in school districts d. decline in local tax receipts
A consumer's optimal choice occurs when the
a. consumer's valuation of the two goods equals the market's valuation of the two goods. b. consumer minimizes her expenditures. c. consumer attains the highest indifference curve. d. consumer's valuation of the two goods exceeds the market's valuation of the two goods.
Which of the following is true of high and variable rates of inflation
What will be an ideal response?