If the United States is viewed by foreigners as a great nation in which to invest, generating a large inflow of foreign investment, this will cause the United States to run a
a. deficit on the current account.
b. surplus on the current account.
c. deficit on the capital account.
d. deficit on the official reserve account.
A
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What will be an ideal response?
If the economy is in recession, explain what advice you would give the President, if you were a monetarist economist. What if you were a Keynesian?
Assuming all excess reserves are loaned out, currency holdings by the public are zero, and a reserve ratio of 20 percent, an initial deposit of $6,000 will lead to a total increase in deposits of:
A. $12,000. B. $24,000. C. $30,000. D. $36,000.
Lower marginal tax rates for welfare programs will reduce the number of people on welfare.
Answer the following statement true (T) or false (F)