If the U.S. has a capital account surplus, it means that
A. foreigners purchase more of U.S. assets than U.S. residents purchase foreign assets.
B. U.S. exports of capital goods exceed its imports of capital goods.
C. U.S. residents purchase more foreign assets than foreigners purchase U.S. assets.
D. the quantity supplied of U.S. financial assets exceed the quantity demanded.
Ans: A. foreigners purchase more of U.S. assets than U.S. residents purchase foreign assets.
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Which of the following is a major category for the Consumer Price Index?
A. unsold goods B. intermediate goods C. housing D. capital goods
A) Given the information above, if full employment GDP were 2,300, would there be an inflationary gap or a recessionary gap? B) What two fiscal policy measures would you recommend to remove that gap?
