When someone in a country buys an asset abroad, the transaction is recorded
A) in the current account.
B) in the official settlements balance.
C) in the financial account as a capital inflow.
D) in the financial account as a capital outflow.
D
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Loud music from a neighbor's party is
A) a negative externality whether or not you like it. B) a positive externality whether or not you like it. C) a positive externality if you like the music, and a negative externality if you don't. D) a negative externality if you like the music, and a positive externality if you don't. E) not an externality.
Suppose the quantity demanded is 1,000 million bushels of peaches per year when the price is $3 per bushel and 1,500 million bushels when the price is $1 per bushel. The price elasticity of demand in this range of the demand curve is:
a. elastic. b. inelastic. c. unitary elastic. d. infinitely elastic.
The Keynesian perspective considers changes to aggregate demand to be the cause of ____________ cycle fluctuations.
a. business b. production c. weather d. consumption
A portfolio of stocks, bonds, and other investments helps reduce the risk of investment
a. True b. False Indicate whether the statement is true or false