Security purchases in the United States by foreigners is
A) a credit item in the current account.
B) a debit item in the capital account.
C) a credit item in the capital account.
D) a debit item in the current account.
C
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In 1975, wage levels in South Korea were roughly 5% of those in the United States
It is obvious that if the United States had allowed Korean goods to be freely imported into the United States at that time, this would have caused devastation to the standard of living in the United States, because no producer in this country could possibly compete with such low wages. Discuss this assertion in the context of the Ricardian model of comparative advantage.
A market is not a pure monopoly if firms
a. can enter it freely. b. sell unique products. c. can exit the market freely. d. require government permission to sell in the market.
If a bank has actual reserves of $40,000 and a 20 percent reserve requirement, then the maximum amount of checkable deposits the bank can have if excess reserves are zero is:
A. $200,000. B. $80,000. C. $300,000. D. $20,000.
If the nominal wage rises by 4 percent, and the price level rises by 7 percent, the real wage will:
A. be unaffected. B. rise by 3 percent. C. fall by 3 percent. D. rise by 11 percent.