An externality is
a. a cost of a transaction that is borne by a third party
b. a benefit of a transaction that is enjoyed by a third party
c. a cost or benefit that arises when market price changes
d. any cost or benefit of a transaction that is not accounted for in the market price
e. the external revenue generated by a firm
D
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Deliberate actions by a central bank to influence the exchange rate are known as
A) current account actions. B) foreign-exchange market interventions. C) dollar-value operations. D) foreign-commerce maneuvers.
Which of the following statements is accurate?
a. When unplanned inventory changes are positive, GDP is below its equilibrium value b. When unplanned inventory changes are negative, GDP is above its equilibrium value c. When unplanned inventory changes are positive, GDP is at its equilibrium value d. When unplanned inventory changes are negative, GDP is below its equilibrium value e. None of the above