Which one of the following would be recorded as a credit in the U.S. balance of payments accounts?
a. the purchase of an European-made car by an American
b. the purchase of insurance from Lloyd's of London by an American business firm
c. the purchase of an American-made computer by an European business
d. the purchase of Japanese bonds by an American investor
C
Economics
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Open market operations by the Fed cause
A) the prices of bonds to change. B) changes in the required reserve ratio. C) aggregate supply to change. D) changes in the difference between the discount rate. and the federal funds rate.
Economics
An economy is at full employment. Which of the following events can create a recessionary gap?
A) an increase in foreign income B) an increase in taxes C) a decrease in the quantity of capital D) a decrease in money wages
Economics