Which of the following is best characterized as a public good?
A) a public library
B) a church
C) primary education
D) police protection
D
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During the Great Recession, the Fed relied on each of the following tools to influence the economy EXCEPT:
A. paying interest on reserves. B. reverse repurchase agreements. C. open market operations. D. quantitative easing.
For each of the following transactions, explain what happens to the merchandise trade balance, current account balance, and financial account balance in both the United States and Mexico. The exchange rate is 2 Mexican pesos per U.S. dollar
(a) A Mexican firm spends 4 million pesos to buy radiology equipment from a U.S. firm. (b) A U.S. firm buys 20,000 sombreros at 20 pesos each. (c) Mexican computer firms send 200 programmers to universities in the United States, paying tuition and expenses of $3000 each. (d) A Mexican entrepreneur gives 50,000 pesos to the United Way of San Antonio, Texas. (e) Mexican investors buy $10 million worth of 30-year U.S. Treasury bonds.