When a country runs a deficit in its current account, the amount of foreign exchange that the country gets from exporting goods and services and from receipts of unilateral transfers falls short of the amount needed to pay for its imports and to make unilateral transfers. Where does the additional foreign exchange come from?
a. From domestic citizens who purchase foreign goods and services
b. From domestic citizens who invest in production facilities, real estate, or financial assets in foreign countries
c. From foreigners who invest in domestic production facilities, real estate, or financial assets, and from official government transactions in foreign currency
d. From government who buy bonds and stocks from foreigners
c
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Other things the same, if the U.S. price level rises, then
a. the supply of dollars in the market for foreign-currency exchange increases, and net exports fall. b. the supply of dollars in the market for foreign-currency exchange increases, and net exports rise. c. the supply of dollars in the market for foreign-currency exchange decreases, and net exports fall. d. the supply of dollars in the market for foreign-currency exchange decreases, and net exports rise.
Suppose earnings are given by E = $60 + $7(24 ? L), where E is earnings and L is the hours of leisure. How much is this person working if her daily earnings are $116?
A. 12 hours B. 18 hours C. 16 hours D. 8 hours
If a bank advertises 3 percent interest for a checking account and the anticipated rate of inflation is 3.5 percent
A. the real rate of interest earned on the account is 3.25 percent. B. the real rate of interest earned on the account is 0.5 percent. C. the real rate of interest earned on the account is 6.5 percent. D. the real rate of interest earned on the account is -0.5 percent.
At the household level, higher saving rates lead to ________ and greater economic security.
A. greater wealth B. less current income C. greater current consumption D. less wealth