Which of the following statements is incorrect with respect to the balance of payments?
a. It constitutes a record of transactions between residents within one country.
b. It consists of a current account, a capital account, and an account to record omissions and errors.
c. Transactions that result in a demand for domestic currency are always entered as a credit.
d. It must balance in the aggregate, but separate accounts can show deficits or surpluses.
e. It constitutes a record of a country's trade in goods and services and financial assets.
a
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Vault cash is equal to $2 million, deposits by depository institutions at the central bank are $1 million, the monetary base is $15 million, and bank deposits are $30 million. Bank reserves are equal to
A) $2 million. B) $3 million. C) $5 million. D) $10 million.
The sacrifice ratio of the Volcker disinflation was larger than previous estimates had predicted
a. True b. False Indicate whether the statement is true or false
Which of the following is not an example of a capital input?
a. A person's skills and abilities, which can be employed to produce valuable goods and services. b. Tools and equipment. c. Factories and offices where goods and services are produced. d. Computers used by a company to record inventory, sales, and payroll.
When total revenue remain unchanged when there is a change in price, demand is
A. unit-elastic. B. inelastic. C. elastic. D. not related.