Which of the following transactions would be excluded in the capital account?
A. A Japanese citizen purchases a U.S. Treasury bill.
B. A Japanese citizen purchases an office building in Manhattan.
C. A U.S. citizen purchases a share of stock from a Japanese company.
D. An American purchases a Toyota.
Answer: D
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A movie theatre raises ticket prices from $8 to $10 in order to raise revenues. The theatre's management is assuming the absolute value of the price elasticity of demand for tickets is
A) less than 1. B) greater than 1. C) equal to 1. D) infinity.
The equilibrium quantity of Smids would be found by
a. choosing a quantity that generated the highest market price b. setting price equal to the revenue target desired by firms c. solving for the price that generates the maximum revenue for sellers d. choosing the quantity desired by consumers and working backward to solve for theprice associated with that quantity e. determining the price and quantity where the demand and supply curves intersect
In corporations, which of the following are agents but not principals?
a. shareholders b. the board of directors c. managers d. workers
After nearly tripling the money supply after the housing market crash and subsequent financial crisis, inflation:
A. has slowly increased, due to restored consumer confidence in the market, increasing the marginal propensity to consume. B. continued to fall, due to the lack of consumer confidence in the market, decreasing the marginal propensity to consume. C. began to spiral out of control, due to the newfound solvency of banks, increasing lending and thus the money multiplier effect. D. stayed relatively low, due to the lack of lending by banks, reducing the effectiveness of the money multiplier.