If the U.S. purchased $100 billion in foreign assets and foreigners purchased $50 billion of U.S. assets, which of the following is true?
a. Net exports equal -$50 billion.
b. Exports total $100 billion.
c. There is a trade deficit.
d. Net exports equal $50 billion.
e. Imports total $50 billion.
D
Economics
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Stagflation is defined as a period when real GDP ________ and the price level ________
A) is constant; rises rapidly B) decreases; increases C) increases; increases D) decreases; decreases E) increases; decreases
Economics
If the amount of high-powered money were 100 and the bank reserve holding ratio was 0.25 then the maximum stock of deposits would be (assume that citizens prefer to keep 10% of their money as cash)
A) 100/0.25 times 1.1 which is 440. B) 100/0.35 which is approximately 286. C) 100/0.35 times 1.1 which is approximately 314. D) 100/0.10 which is 1000.
Economics