The balance-of-payments identity is an equation that shows that the value of:
A. net capital inflow equals the net capital outflow.
B. payments from a country exceeds payments to a country.
C. net exports equals the net capital outflow.
D. imports must equal exports.
Answer: C
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If a society moves from a period of time with significant unemployment to a time with full employment, its production possibilities frontier will
A) shift rightward. B) not shift because the society moves from a point inside the frontier to a point on the frontier. C) shift leftward. D) not shift because the society moves from one point on the frontier to a point inside the frontier. E) not shift because the society moves from one point on the frontier to a point outside the frontier.
The PDV of a perpetuity with a yearly payment of $500 at an interest rate of 5% is
A) $100. B) $5,000. C) $25,000. D) $10,000. E) $100,000.