When someone in a country buys an asset abroad, the transaction is recorded
A) in the current account.
B) in the official settlements balance.
C) in the financial account as a capital inflow.
D) in the financial account as a capital outflow.
D
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When the interest rate on a bond is ________ the equilibrium interest rate, in the bond market there is excess ________ and the interest rate will ________
A) above; demand; rise B) above; demand; fall C) below; supply; fall D) above; supply; rise
Which of the following statements represents a correct sequence of events?
A) Productivity rises in the agriculture sector, the supply curve of foodstuffs shifts to the left, price rises, and total revenue rises assuming demand is inelastic. B) Productivity rises in the agriculture sector, the supply curve of foodstuffs shifts to the right, price rises, and total revenue rises assuming demand is inelastic. C) Productivity rises in the agriculture sector, the supply curve of foodstuffs shifts to the right, price falls, and total revenue falls assuming demand is elastic. D) Productivity rises in the agriculture sector, the supply curve of foodstuffs shifts to the left, price falls, and total revenue rises assuming demand is elastic. E) none of the above