Suppose 60% of U.S. trade is with England and the rest is with Japan. If the dollar rises by 20% against the pound but falls by 20% against the yen, what is the percentage change in the effective exchange rate of the United States?

The production possibilities frontier model shows that

A) if all resources are fully and efficiently utilized, more of one good can be produced only by producing less of another good. B) a market economy is more efficient in producing goods and services than is a centrally planned economy. C) economic growth can only be achieved by free market economies. D) if consumers decide to buy more of a product, its price will increase.

All of the following are surplus items in the balance of payments EXCEPT

A) purchases of foreign assets. B) exports of merchandise. C) foreign tourist expenditures. D) funds deposited in this country by foreign residents.