What is the difference between defensive and dynamic open market operations?
What will be an ideal response?
Dynamic open market operations are intended to change monetary policy as directed by the FOMC. Defensive open market operations are intended to offset temporary fluctuations in the demand or supply for reserves, not to carry out changes in monetary policy.
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In 2008, the current account balance was -$706 billion and the capital and financial account balance was +$711 billion. Therefore, the official settlements account balance was ________ and the balance of all payments accounts summed was ________
A) -$5 billion; zero B) negative; negative C) positive; positive D) +$5 billion; zero E) not enough information to determine; negative
In the long run, a firm should exit the industry if its total costs exceed its total revenues
a. True b. False Indicate whether the statement is true or false