If the current account has a negative balance of $100 and the capital and financial account has a positive balance of $80, there will be ________ in official reserves of ________

The purchasing power parity theory is a good predictor of

a. all of the following b. the long-run tendencies between changes in the price level and the exchange rate of two countries c. interest rate differentials between two countries when there are strong barriers preventing trade between the two countries d. how intervention in exchange markets by central banks influences prices in various countries e. the day-to-day relationship between changes in the price level and the exchange rate of two countries

If a consumer is maximizing utility and then the price of Good A increases: a. the marginal utility from the consumption of Good A will fall

b. the marginal utility from the consumption of Good A will remain unchanged. c. the marginal utility per dollar spent on Good A will decrease. d. consumption of Good A will increase.