Suppose an economics professor receives a $10,000 royalty check from a foreign publishing company and deposits the amount in a local bank. This transaction would be recorded as:

a. a $10,000 credit entry in the domestic services account.
b. a $20,000 debit entry in the domestic capital account.
c. a $20,000 debit entry in the domestic capital account.
d. a $10,000 credit entry in the domestic capital account.
e. a $10,000 debit entry in the domestic services account.

a

Economics

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If foreign holdings of U.S. dollars increase, holding all else constant

A) the balance on the U.S. financial account will increase. B) the balance on the U.S. current account will increase. C) the U.S. balance of trade will increase. D) the balance on the U.S. capital account will increase.

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Since approximately 1970, the most stable Phillips-type relationship for the United States has been between which of the following?

A) the rate of inflation and the change in the unemployment rate B) the unemployment rate and the change in the rate of inflation C) the change in the unemployment rate and the change in the rate of inflation D) the inverse of the unemployment rate and the rate of inflation E) the unemployment rate and the rate of inflation

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