If the Federal Reserve unexpectedly decides to sell bonds, which of the following will most likely happen in the short run?
a. The demand for loanable funds will increase, which will exert upward pressure on the interest rate.
b. The supply of loanable funds will decrease, which will exert upward pressure on the interest rate.
c. The supply of loanable funds will increase, which will exert downward pressure on the interest rate.
d. The natural rate of unemployment will increase.
B
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A single-price monopoly is characterized by a marginal revenue curve that is
A) upward sloping. B) downward sloping. C) horizontal. D) vertical.
A U.S. citizen buys a newly issued share of stock in England, paying for his order with a check, which the British company deposits in its own U.S. bank account in New York. How is this transaction accounted for in the balance of payments?
A) financial account, U.S. asset export B) current account, U.S. service import C) current account, British good export D) financial account, British asset import E) financial account, U.S. asset import