A debtor nation means a nation
A) whose imports exceeds its exports.
B) whose current account is less than its capital account.
C) who—through its history—has invested less in the rest of the world than other countries have invested in it.
D) whose current lending to the rest of the world exceeds its borrowing from the rest of the world.
C
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Suppose that a foreign monopolist supplies the entire domestic market (there is no domestic production). The home country then applies a 5% tariff on imports from the foreign monopolist. How will the tariff affect the price in the home market?
a. It will increase by more than 5%. b. It will increase by 5%. c. It will increase by less than 5%. d. It will not change.
Which Fed policy would be part of an expansionary monetary policy?
A) Buying government bonds. B) Raising the discount rate. C) Both of the above. D) None of the above.