Which of the following statements about the financing of international trade is correct?
A. International trade means the trading of financial assets for foreign exchange
B. Most international transactions are made with gold
C. Imports are more important than exports to the economy of a nation
D. Exports provide the foreign currencies needed to pay for imports
D. Exports provide the foreign currencies needed to pay for imports
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When the economy is at full employment, the
A) natural unemployment rate is equal to 0 percent. B) natural unemployment rate equals the unemployment rate. C) natural unemployment rate is equal to 10 percent. D) unemployment rate is equal to 0 percent. E) frictional unemployment rate is equal to 0 percent.
Prices are useful in coordinating society's economic planning because
a. they convey information about which goods are scarce and which are plentiful. b. economies based on price systems are more flexible than centrally planned economies. c. economies based on price systems are more likely than centrally planned economies to minimize the cost of producing society's output. d. All of the above are correct.
In the market for loanable funds, the supply curve:
A. is downward sloping. B. is made up of people who want to borrow funds. C. represents savers. D. reflects that more people will choose to save the lower is the interest rate.
When the housing bubble popped, the effect of the negative demand side shock and the negative supply side shock were the same on:
A. output, causing it to definitely decrease. B. prices, causing them to definitely rise. C. output, causing it to definitely increase. D. prices, causing them to definitely fall.