When an American buys a Swedish financial asset,
a. both c and d
b. the U.S. balance of goods and services worsens
c. the U.S. capital account balance declines
d. the U.S. balance of payments worsens
e. the U.S. trade balance worsens
C
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Let S = y - (150 + 0.6y). Assume no government or foreign sectors. What is the consumption function?
A) C = 150 + 0.6y B) C = -150 - 0.6y C) C = 150 + 0.4y D) C = -150 + 0.4y
The most common form of trading goods for goods is
a. bilateral trade. b. government commodity distribution. c. status-based trades. d. barter. e. payments in kind.
Which of the following statements is true of spurious regressions?
A. The OLS estimates of the population parameters are efficient and unbiased and the t statistic is valid. B. Even if the explanatory variables and the dependent variable are independent times series processes, the R2 can be large. C. Spurious regressions are limited to I(0) processes, and are not possible in case of I(1) processes. D. Spurious regressions are limited to I(1) processes, and are not possible in case of I(0) processes.
Refer to the graph shown. In the graph, if the price level is P1 and the aggregate demand curve is AD0 then the economy is:
A. in an inflationary gap. B. in a recessionary gap. C. fully employed. D. in a long-run equilibrium.