Which of the following would be represented as a debit in the U.S. balance of payments?
a. U.S. purchase of cars from Italy
b. U.S. sale of beef to Israel
c. U.S. government receives transfers from foreign governments to support U.S. expenses incurred in Europe
d. U.S. residents receive gifts of money from friends abroad
e. income received by U.S. resident from overseas investment
A
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The marginal propensity to consume describes ________
A) the tendency to consume fringe, or unusual items B) the impact of a change in spending on income C) the impact on consumption resulting from a change in income D) lifetime consumption resources
Through open market operations, the Fed
A) controls the demand for reserves, but not the supply of reserves, in the banking system. B) controls the supply of reserves and the demand for reserves in the banking system. C) controls the supply of reserves, but not the demand for reserves, in the banking system. D) has influence over, but cannot directly control, the supply of reserves and the demand for reserves in the banking system.