If merchandise imports are greater than merchandise exports, the nation is experiencing a
a. negative balance on current account
b. merchandise trade deficit
c. capital account imbalance
d. favorable balance of trade
e. growth in foreign reserves
B
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The process of asset transformation refers to the conversion of
A) safer assets into risky assets. B) safer assets into safer liabilities. C) risky assets into safer assets. D) risky assets into risky liabilities.
Frictional unemployment is
a. not inevitable; rather, it can be reduced to zero by well-designed public policies. b. not inevitable; rather, it could be reduced to zero if by the elimination of unemployment insurance. c. inevitable, because at any given time, jobs are being created in some firms and destroyed in other firms. d. inevitable, because in some industries, wages are always set above the level that brings supply and demand into equilibrium.