A negative value for the U.S. official reserve assets line in the balance of payments accounts means that
A. the U.S. central bank has decreased its holdings of foreign reserve assets.
B. the U.S. central bank has increased its holdings of foreign reserve assets.
C. U.S. residents bought more gold from foreigners than they sold.
D. U.S. residents have sold more gold to foreigners than they bought.
Answer: A
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Which of the following statements about the social welfare function is not true?
a. It can be thought of as a set of indifference curves that depict the wealth of the entire society. b. It does not employ interpersonal utility comparisons. c. It is one possible method for evaluating the public interest/ d. It allows for the rankings of possible outcomes.
Expansionary fiscal policy may have an even smaller effect on aggregate demand in the open economy than a closed economy
a. True b. False Indicate whether the statement is true or false