Which of the following examples shows a surplus?
a. At $15,000 per automobile, a company produces 1,000 automobiles and has a demand for 3 more.
b. At $15,000 per automobile, a company produces 1,000 automobiles and has a demand for 400 more.
c. At $15,000 per automobile, a company produces 1,000 automobiles and sells 1,000.
d. At $15,000 per automobile, a company produces 1,000 automobiles and sells 700.
d. At $15,000 per automobile, a company produces 1,000 automobiles and sells 700.
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Over the last 25 years, according to the United States balance of payments
A) the current account and the capital and financial account balances tend to move in the same direction. B) the current account and the capital and financial account balances tend to move in opposite directions. C) there is no clear relationship between the current account balance and the capital and financial account balance. D) the official settlements balance fluctuates greatly from year to year.
How does the Fed intervene in the foreign exchange market and what the effects are of the Fed's actions?
What will be an ideal response?
Suppose that the federal budget is balanced when GDP is at potential GDP. If equilibrium GDP falls below potential
A) government transfer payments will be rising and tax receipts will be falling. B) this will result in a current budget deficit. C) the cyclically adjusted budget will be balanced. D) All of the above are correct.
In the figure above, a factor that could cause the supply of bonds to increase (shift to the right) is
A) a decrease in government budget deficits. B) a decrease in expected inflation. C) expectations of more profitable investment opportunities. D) a business cycle recession.