Suppose that the U.S. government acquires more foreign currency. How does this change affect the balance of payments accounts?
A) The capital and financial account is negative.
B) The capital and financial account is positive.
C) The official settlements account balance is negative.
D) The official settlements account balance is positive.
E) The balance of payments account sum to a positive number equal to the value of the additional foreign currency the government has obtained.
C
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A successful market economy requires well defined property rights and
A) a safety net to ensure that those who cannot participate in the market economy can earn an income. B) detailed government regulations. C) balanced supplies of all factors of production. D) an independent court system to adjudicate disputes based on the law.
Open market purchase of government securities by the Fed increases the federal funds rate
Indicate whether the statement is true or false