What effect does the following transaction have on the U.S. balance of payments?(Choose the proper debit and credit entries.)The U.S. Federal Reserve intervenes to puchase U.S. dollars in the foreign exchange market
a. Debit the U.S. financial account; credit the U.S. financialaccount.
b. Credit the U.S. financial account; debit the U.S. financialrccount.
c. Debit the U.S. financial account; credit the U.S. current account.
d. Credit the U.S. financial account; debit the U.S. current account.
.A
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Capacity utilization increases. What is the impact on aggregate expenditures and income?
A) Both increase. B) Both decrease. C) Aggregate expenditure increases and income decreases. D) Aggregate expenditure decreases and income increases.
In any monetary system, the means of payment must be the same as the unit of value
a. True b. False
Assuming that resources are specialized, the opportunity cost of an item increases as production of it rises. Therefore, we expect that firms will produce more if
a. the price increases. b. the price decreases. c. the opportunity cost is greater than the price. d. government asks firms to produce more. e. the income of buyers increases.
Transfer pricing is a strategy that may be used by MNEs to ________.
A) reduce consolidated corporate income taxes B) partially finance a subsidiary in another country C) transfer funds from a subsidiary to the parent corporation D) all of the above