The purchase of a meal by an American tourist at La Tour d'Argen (a restaurant in Paris) would find its way into the American balance of payments as a:
A. positive entry in the current account.
B. negative entry in the current account.
C. positive entry in the financial and capital account.
D. negative entry in the financial and capital account.
Answer: B
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The structural deficit is extremely sensitive to the performance of the economy
a. True b. False Indicate whether the statement is true or false
According to the text, The American Recovery and Reinvestment Act of 2009:
A. remains hotly debated whether it was successful or not. B. is known as the most effective legislation ever passed in U.S. history. C. was unsuccessful. D. was successful.
Most economists agree that modest inflation is desirable over zero inflation because:
A. it allows a margin of error for those deciding on the money supply. B. it allows the Fed to more easily engage in expansionary monetary policy. C. it helps firms to more easily adjust real wages. D. All of these statements are true.
Which of the following is not included in investment?
A) the purchase of new equipment by firms B) nondurable goods C) the purchase of a new home D) none of the above