Which of the following statements is false?
A. If the current account is in surplus, the capital account must be in deficit.
B. The overall sum of all the entries in the balance of payments must be zero.
C. A country runs a current account surplus if it sells more of its assets abroad than it buys abroad.
D. A country runs a net export deficit if it imports more than it exports.
Answer: C
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Refer to the scenario above. If both the firms are optimizing, which of the following statements is true?
A) Firm B will produce more than Firm A. B) Firm A will produce more than Firm B. C) Both firms will produce the same quantity. D) The quantity produced by both firms will depend on the demand for pens and not the marginal costs.
Illustrate the effectiveness of monetary policy with fixed exchange rates
What will be an ideal response?
A microeconomic model CANNOT be used to
A) evaluate the impact of a price change on a firm's revenue. B) predict the impact on a rise of the minimum wage on unemployment. C) evaluate the fairness of the proposal to nationalize health insurance. D) evaluate the effect of an increase in stadium size on the price of a sport team's tickets.
Unused lines of credit on credit cards are part of M2
a. True b. False Indicate whether the statement is true or false