Suppose a German bank purchases a U.S. Treasury bond. This transaction would be recorded in the:
A. capital account.
B. current account.
C. goods trade balance.
D. unilateral transfers.
Answer: A
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Given the scenario described, if the market price of hammers increased from $8 to $11:
Assume there are three hardware stores, each willing to sell one standard model hammer in a given time period. House Depot can offer their hammer for a minimum of $7. Lace Hardware can offer the hammer for a minimum of $10. Bob's Hardware store can offer the hammer at a minimum price of $13. A. total producer surplus would increase by $3. B. total producer surplus would increase by $6. C. total producer surplus would increase by $9. D. total producer surplus would increase by $4.
If the price of a product increases, we would expect
A) the level of demand to decrease. B) quantity supplied to increase. C) the level of supply to increase. D) an increase in quantity demanded.
Refer to the information provided in Figure 28.7 below to answer the question(s) that follow.
Figure 28.7Refer to Figure 28.7. An expansionary fiscal policy followed by a leftward shift in the AS curve could move the economy from Point A to Point ________, and then to Point ________.
A. B; E B. E; B C. C; D D. D; C
The quantity of money people are willing and able to hold at alternative interest rates, ceteris paribus, is known as the
A. Supply of money. B. Demand for money. C. Equilibrium of money. D. None of the choices are correct.