An example of a transaction that will be a surplus item on the U.S. balance of payments is
A. a Nissan plant in Tennessee buying parts from the main plant in Japan.
B. the purchase of a BMW by an American.
C. a gift of cotton from the United States government to Egypt.
D. the purchase of Alphabet stock by a German resident.
Answer: D
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Under a fixed exchange rate system, if the inflation rate in the United States is 5 percent a year and the inflation rate in Australia is 0 percent a year, then the U.S. real exchange rate will
A) increase 5 percent a year. B) decrease 5 percent a year. C) remain constant. D) possibly increase or decrease.
Which of the following documents established "rules of the game"?
A) The Book of Exodus B) The Scrabble Players Dictionary C) The Bylaws of the AFL-CIO D) The Constitution of South Africa E) All of the above.
In the simple Keynesian model, total savings equals
a. total investment minus the budget deficit. b. total planned and unplanned investment. c. planned investment. d. planned investment plus the budget deficit. e. none of the above.
Which of the following would be an example of a transaction later regretted because it was made with incomplete information?
A. Sue purchased a lottery ticket that did not win her any money. B. Larry moved to a new apartment but later decided it was too small for his needs. C. Tim bought products from a seller that knew they were defective. D. All of these are good examples of incomplete information.