The capital and financial account balance is equal to
A) the value of exports of U.S. capital goods minus the value of imports of capital goods into the United States.
B) exports minus imports.
C) foreign assets owned by the United States minus U.S. assets owned by foreigners.
D) U.S. investment abroad minus foreign investment in the United States.
E) foreign investment in the United States minus U.S. investment abroad.
E
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If whole tomatoes were money, which of the following functions of money would be the hardest for tomatoes to satisfy?
A) medium of exchange B) store of value C) certificate of gold D) unit of account
Your local grocery store reduces transaction costs to the consumer
A) by reducing the consumer's need to travel from food producer to food producer (or manufacturer to manufacturer) to purchase the food staples that the consumer desires. B) by providing a system that directs funds from lenders to borrowers. C) by providing a system of justice to enforce contracts. D) All of the above are correct.
Other things constant, which of the following would you expect to increase the output growth rate of a country?
a. an increase in the rate of taxation on personal income b. an increase in the rate of investment as a share of total output c. passage of regulations restricting international trade d. passage of regulations restricting domestic trade
The primary cause of inflation is a. growth in the quantity of money. b. variability in relative prices
c. inter-bank lending. d. reduced velocity of money.