Changes in business inventories will be negative when

A) production exceeds sales.
B) production is less than sales.
C) a trade surplus exists.
D) a budget surplus exists.


B

Economics

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The Fed buys $100 million of government securities from Bank A. What is the effect on Bank A's balance sheet?

A) Securities decrease by $100 million and reserves increase by $100 million. B) Securities decrease by $100 million and deposits decrease by $100 million. C) Securities increase by $100 million and reserves decrease by $100 million. D) Securities increase by $100 million and reserves increase by $100 million.

Economics

Real GDP per capita is calculated by dividing the value of real GDP for a country by the country's adult population

Indicate whether the statement is true or false

Economics

Judging by the ongoing changes in tariff rates in major trading countries, the world has been experiencing a great

A) trade liberalization. B) surge of protectionism. C) lack of progress in the trade-policy area. D) move towards regional integration. E) shift from export subsidies to specific tariffs.

Economics

In the endogenous growth model presented in the text, suppose that u represents the fraction of time spent working (as opposed to accumulating human capital), b represents the efficiency of human capital accumulation, H represents the amount of human

capital, and z represents the marginal product of efficiency units of labor. Consumption equals A) buH. B) zuH. C) buz. D) buzH.

Economics