General Electric, a U.S. company, buys $50 million of Japanese securities. This transaction causes the U.S.:
A. financial and capital account balance to decrease.
B. financial and capital account balance to increase.
C. current account balance to decrease.
D. current account balance to increase.
Answer: A
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Use the following information to answer the next question.C = A + .875(Y - T)A = $10,000I = $2,000G = $2,500T = $1,000NX = $1,025What is the equilibrium level of real GDP?
A. $117,200 B. $116,200 C. $132,200 D. $16,525
The growth rate of real GDP in the United States rises from 4.2% to 4.4%. Explain and calculate how this increase in the growth rate of real GDP affects the number of years it will take for real GDP to double
What will be an ideal response?
Regarding the privilege of incorporation (the right to organize an enterprise in the corporate form), all of the following are true except
(a) It gives a business firm limited liability, perpetual life and the rights of a citizen. (b) It is not provided for directly by the Constitution because, apart from state governments, the Constitution made no provisions for groups. (c) It is provided for at all levels of government—federal, state and local. (d) There is no "except"; all of the above are true.
Macroeconomic equilibrium occurs when
A. the quantity of output demanded equals the quantity of output supplied. B. the price level is increasing. C. the price level is decreasing. D. there is very low cyclical unemployment.