Assume the United States is the "domestic" country and China is the "foreign" country. Which of the following might increase the real exchange rate between the United States and China?
A) an increase in the price level in the United States
B) an appreciation of the yuan
C) an increase in the price level of China
D) a depreciation of the dollar
A
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If output is increased in the long-run, average production costs in the presence of internal diseconomies of scale will ________, and in the presence of external diseconomies of scale, will ________
A) decrease; decrease B) increase; remain constant C) remain constant; increase D) decrease; remain constant E) increase; decrease
Everything else held constant, when households save less, wealth and the demand for bonds ________ and the bond demand curve shifts ________
A) increase; right B) increase; left C) decrease; right D) decrease; left
Differentiate between the current account balance and the capital account balance
In 2018, Pete Rich purchases a 1642 painting by Rembrandt for $20 million. He also pays a one percent commission to the auction house that sold the painting. What is the contribution of these transactions to GDP in the year 2018?
A. $0 B. $2 million C. $200,000 D. $20.2 million