What are the three categories of transactions in the balance of payments? Give an example of each
The current account includes records of the trade of goods and services, investment income, and unilateral transfers. The purchase of American machinery by a foreign firm is recorded here. The capital account records changes in the ownership of real and financial assets. The sale of IBM stock to a foreign investor is recorded here. The official reserve account records changes in currency holdings of the central bank. If the United States reduces its currency holdings by supplying foreign currency to the foreign exchange market, this transaction is recorded in the official reserve account..
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The equilibrium price is the price at which the quantity
A) sold equals the quantity bought. B) demanded equals the quantity sold. C) demanded equals the quantity supplied. D) supplied equals the quantity bought.
A good is considered nonexcludable if
a. many individuals can share in the consumption of the same unit of the good. b. the consumption of the good by one individual lowers the amount available for others. c. it is impossible or very costly to exclude nonpaying customers from receiving the good. d. its production is financed through tax revenue rather than market prices.