If the exports are $1.5 trillion, imports are $2 trillion, short-term investment to and from the U.S. exactly balances, and taxes and private payments to and from the U.S. also exactly balance, the current account balance is a
A. deficit of $.5 trillion.
B. surplus of $3.5 trillion.
C. surplus of $.5 trillion.
D. deficit of $3.5 trillion.
Answer: A
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If an economy has a velocity of circulation of 3, then
A) the quantity of money is 3 times real GDP. B) in a year the average dollar is exchanged 3 times to purchase goods and services in GDP. C) nominal GDP is 1/3 the size of the quantity of money. D) the quantity of money is $3 for every dollar of GDP.
In the financial crisis of 2008, which of the following were not among the consequences of high leverage in the banking industry? a. Less investment was undertaken than would otherwise have been the case
b. Less consumption spending took place than would otherwise have been the case. c. Unemployment was lower than it would otherwise have been. d. Real GDP was lower than it otherwise would have been
The U.S. government has more than 10,000 tariff classifications and more than half of them are subject to interpretation.
a. true b. false
Accounting profits can tell a business _______________________, and economic profits can tell a business ______________________.
A. if it is making money with this venture; if it can make more money with a different venture B. if it can make more money with a different venture; if it is making money with this venture C. if it is a profitable business; if it can be any more profitable D. if it can be any more profitable; if it is profitable