When a commercial bank borrows from a Federal Reserve Bank
A. the supply of money automatically increases.
B. it indicates that the commercial bank is unsound financially.
C. the commercial bank's lending ability is increased.
D. the commercial bank's reserves are reduced.
C. the commercial bank's lending ability is increased.
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Agave, Six Feet Under, Globe, Silk, Sotto Sotto and Zocalo are all restaurants in Atlanta. In the long run, Globe could I. make a positive economic profit. II. make zero economic profit. III. incur an economic loss
A) Only I B) Only II C) I, II, and III D) Only I and II
In an open economy, the current account balance equals ________. (Assume that the capital account is zero and net transfers are zero.)
A) net foreign investment + domestic investment B) net foreign investment C) net capital outflows D) the financial account balance + net income on investments