Judy has just bought a car that is made in Germany. As far as the U.S. balance of payments is concerned this purchase is a(n)

Unilateral transfers between countries are

A) long-term loans. B) only international gifts, never payments that do not correspond to the purchase of any good, service, or asset. C) part of the current account but not a part of national income. D) known for reducing the income of capital owners. E) the difference between Y and GNP if the identity Y = C + I + G + CA holds exactly.

The sign of the elasticity computation is important because the value of the price elasticity can be negative or positive.

Answer the following statement true (T) or false (F)