Which of the following is a deficit item on the U.S. balance of payments accounts?
A. A Spaniard buys 100 shares of Alphabet stock.
B. A U.S. firm sells a product to a Mexican firm.
C. An Italian tourist in Miami purchases a beach ball.
D. A U.S. resident buys a mobile device in China.
Answer: D
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A prediction of the Ricardo-Barro effect is
A) a larger decrease in the real interest rate when the government runs a budget surplus. B) no effect on the real interest rate when the government runs a budget deficit. C) a larger decrease in investment when the government runs a budget deficit. D) a larger increase in the real interest rate when the government runs a budget deficit. E) a larger decrease in investment when the government runs a budget surplus.
When a country decreases the official value of its currency, for example, Russia changes the value of the ruble from $.16 to $.04, it is said to have ____ its currency
a. floated b. revalued c. devalued d. depreciated
People produce more when they ___ ____ ____ ___ ____ ___ ____
Fill in the blank(s) with the appropriate word(s).
More and more devices are being introduced into the market that perform tasks similar to that of PCs, such as tablets and smartphones. At the same time, the price of computer chips to make high-end PCs continues to fall. What is the effect of the events on equilibrium price and quantity of high-end PCs?
A. Price falls continuously as does quantity sold. B. Price falls continuously while quantity falls initially but then rises, recouping earlier losses. C. Price rises then falls while quantity sold falls continuously. D. Price falls continuously and quantity rises continuously.