The income-expenditure identity for an open economy is:
A. Im ? Ex = C + I.
B. Y = C + I + G.
C. Y + G = C + I ? NX.
D. Y = C + I + G + NX.
Answer: D
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If Second National Bank has more rate-sensitive liabilities then rate-sensitive assets, it can reduce interest rate risk with a swap that requires Second National to
A) pay fixed rate while receiving floating rate. B) receive fixed rate while paying floating rate. C) both receive and pay fixed rate. D) both receive and pay floating rate.
If a fair game is played many times the monetary losses or gains will:
a. approach zero. b. be negative. c. be positive. d. result in an outcome that cannot be determined without more information.
Use the following graph to answer the next question.
Assume the economy is initially located on AD0 and AS0. An increase in resource prices would result in price ________ and real domestic output ________.
A. F; A B. F; C C. G; B D. E; B
Refer to the information provided in Figure 15.5 below to answer the question(s) that follow. 
Figure 15.5 Refer to Figure 15.5. In the long run in this monopolistically competitive industry,
A. some firms will enter the industry and industry profits will increase. B. some firms will leave the industry until the remaining firms break even economically. C. product supply will increase so prices will go up. D. all firms will leave the industry.