Which of the following events would not be recorded in the U.S. balance of payments?
a. The money supply of a foreign nation increases.
b. Oxfam America, a U.S. relief agency, sends food to drought victims in sub-Saharan Africa.
c. Oxfam America, a U.S. relief agency, sends farm equipment to drought victims in sub-Saharan Africa.
d. The Pentagon stations troops in Saudi Arabia.
e. Pepsi-Cola sends its soft drink to Russia; in return, the United States gets Stolichnaya vodka. No money changes hands.
A
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To prevent nations with an inflation bias from entering the Eurozone, the Maastricht criteria for accession include:
A) a trial period of joining the Eurozone to see how they fare. B) a three-month period of low interest rates. C) a lengthy trial period of demonstrated commitment to low inflation before joining. D) promises and written commitments to low deficits and debt reduction on entering.
If a euro costs $1.25 today, and it costs $1.50 tomorrow, what has happened to the dollar-euro exchange rate?
a. Both the dollar and euro have depreciated. b. The dollar has appreciated and the euro has depreciated. c. The dollar has depreciated and the euro has appreciated. d. Both the dollar and euro have appreciated