Classify each of the following as debits or credits in the U.S. balance of payments. A. Russian tourists travel to United States. B. U.S. gives foreign aid to Bosnia. C. British investors purchase U.S. government bonds. D. American tourists travel to
Australia. E. Volkswagen earns profits in the United States from its new cars. F. Toyota builds a new plant in Ohio. G. Capital Records sells rock and roll music in Sweden. H. German consumer buy Ronco Vegematics made in United States. I. Procter & Gamble earns profits in their Mexican facility.
A, C, F, G, and H are credits; B, D, E, and I are debits.
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A firm is a monopoly if
a. it faces a demand curve for its product that equals market demand. b. it is a very large firm. c. it takes its rivals' actions into account when choosing its price and output levels. d. its production decisions do not affect the price of its product.
In the economic way of thinking, capital contributes to
A) the exploitation of labor. B) wealth. C) greed. D) macroeconomic inefficiency. E) none of the above.
The risk that increased market interest rates will cause a decline in the value of an investment bank's holdings of long-term securities is known as
A) credit risk. B) interest-rate risk. C) currency risk. D) security risk.
Perfect flexible prices are a critical assumption in the
a. classical model. b. Keynesian model. c. monetarist model. d. new Keynesian model. e. both a and c.