If the official settlements account is zero, whenever the United States has a current account deficit, it must also have a capital account deficit
Indicate whether the statement is true or false
FALSE
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The relationship between the aggregate demand curve and the aggregate expenditures model is derived from the fact that a(n) ________.
A. decrease in the price level shifts the aggregate expenditures schedule downward and decreases equilibrium GDP B. increase in the price level shifts the aggregate expenditures schedule downward and increases equilibrium GDP C. increase in the price level shifts the aggregate expenditures schedule upward and decreases equilibrium GDP D. decrease in the price level shifts the aggregate expenditures schedule upward and increases equilibrium GDP
Refer to Figure 14.3. To maximize the number of workers hired, the labor union will agree to wage rate:
A) W0. B) W1. C) W2. D) W3. E) none of the above
If a bank sells a $1,000 security to the Fed and the required reserve ratio is 20 percent: a. the bank has $1,000 in additional excess reserves, of which it can lend $800. b. the bank has $1,000 in additional excess reserves, all of which it can lend out. c. the bank has lost an asset and must reduce its loans
d. the bank has lost a liability. e. there is no change in excess reserves, since net assets do not change.
The different methods by which the sellers inform their potential buyers about the product is called:
a. knowledge transfer. b. advertising. c. product offering. d. information dissemination.