The difference between the interest income or receipts earned on investments in the rest of the world by the residents of a given country and the payments to foreigners on investments they have made in the given country is called:

Refer to Figure 15-15. In the figure above, suppose the economy in Year 1 is at point A and is expected in Year 2 to be at point B. Which of the following policies could the Federal Reserve use to move the economy to point C?

A) decrease income taxes B) sell Treasury bills C) decrease the required-reserve ratio D) buy Treasury bills

If the value added of a firm is positive, will the firm necessarily have positive profits?

What will be an ideal response?