An example of a deficit item on the U.S. balance of payments is
A. the payment of a dividend by a Japanese firm to a U.S. family.
B. the purchase of Chinese yuan by a U.S. firm.
C. the sale of a spark plug made by a U.S. firm in Michigan to a Nissan plant in Tennessee.
D. a deposit in a bank in Chicago by the government of Saudi Arabia.
Answer: B
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In the summer of 2008, consumers indicated that they were less optimistic about the future of the economy. Such a change in sentiment is likely to
a. shift aggregate demand to the left. b. increase output. c. decrease unemployment. d. increase prices.
Most economists would agree with which statement about fiscal policy?
A. It's useful when few resources are unemployed due to an aggregate demand shock. B. It's useful when a lot of resources are unemployed due to a real shock. C. It's useful when few resources are unemployed due to a real shock. D. It's useful when a lot of resources are unemployed due to an aggregate demand shock.
Which of the following is NOT a feature of Sweezy oligopoly?
A. Each firm believes that rivals will cut their prices in response to a price reduction, but will not raise their prices in response to a price increase. B. The firms produce differentiated products. C. Free entry and exit occurs in the market. D. There are a few firms in the market serving many consumers.
The number of central banks that exist in the world today is:
A. over 50 but less than 100. B. less than 10. C. about 250. D. over 180.