If additional information is not used when forming an optimal forecast because it is not available at that time, then expectations are
A) obviously formed irrationally.
B) still considered to be formed rationally.
C) formed adaptively.
D) formed equivalently.
B
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When banks use the money they receive from deposits to make loans, they:
A. decrease the money supply through open market operations. B. increase the money supply through open market operations. C. increase the money supply through the money multiplier. D. decrease the money supply through the money multiplier.
A citizen of Mexico who has lived in El Paso during the past three years has just sent $100 to relatives in Mexico for Christmas. This transaction is
A) counted in the U.S. balance of payments as a current account item. B) counted in the U.S. balance of payments as a surplus item. C) counted in the U.S. balance of payments as an export item. D) none of the above.