An increase in the saving rate permanently increases the growth rate of real GDP per person
a. True
b. False
Indicate whether the statement is true or false
False
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If potential GDP for the fourth quarter of 2012 = $58.5 billion, and real GDP for the fourth quarter of 2012 = $53.7 billion, then the output gap was
A) -8.9%. B) -8.2%. C) 8.2%. D) 8.9%.
Assuming imperfect capital mobility and a fixed exchange rate, then an expansionary monetary policy
a. results in a balance of payments surplus without a conflict between domestic goals and external balance. b. results in a balance of payments deficit with a potential conflict between domestic goals and external balance. c. will shift the LM curve to the left. d. will have no effect on the balance of payments.
What effect does the following transaction have on the U.S. balance of payments?(Choose the proper debit and credit entries.)U.S. residents purchase Mexican products and pay for them with Mexican pesos
a. Debit the U.S. financial account; credit the U.S. current account. b. Credit the U.S. financial account; debit the U.S. current account. c. Debit the U.S. financial account; credit the U.S. financial account. d. Credit the U.S. financial account; debit the U.S. financial account. e. Credit the U.S. financial account; debit the U.S. net errors and omissions account.
Which of the following offers the best example of the special interest theory of regulation?
a. The deregulation of the trucking industry. b. Consumer groups lobbying the Federal Energy Regulatory Commission to create a competitive market for natural gas. c. A state public utility commission regulating a natural monopoly to best serve the public interest by maintaining low prices and sustaining the firm at zero economic profit. d. The Civil Aeronautics Board (CAB) protecting existing airlines from competition by rejecting every single application for new entry into interstate airline markets over the life of the CAB.