When the Chinese government buys U.S. government bonds, from the perspective of the United States, this is a(n):
A. capital outflow.
B. capital inflow.
C. import.
D. export.
Answer: B
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Extraneous events that are completely unrelated to economic fundamentals are called
A) moonbeams. B) black holes. C) sunspots. D) time warps.
An insolvent institution has:
A. liabilities that exceed its assets. B. assets that exceed its liabilities. C. assets that exceed its equity. D. equity that exceeds its liabilities.
Ceteris paribus is:
A. the Latin term for "all other things being the same." B. often used by economists to isolate the effect of a multiple changes that are important. C. only necessary for the definition of the law of demand. D. the Latin term for "as things change only consider these changes".
Suppose the dollar is subject to a floating exchange rate system and that R is the number of dollars per unit of foreign exchange. If R increases, then the dollar
A) depreciates. B) appreciates. C) is devalued. D) is revalued.