Question

32. Dumping means selling goods in a foreign market at lower prices than those charged in the home market.

True

False

33. A large tax cut in the United States should lead to an increase in the trade deficit.

True

False

34.If you have a checking account at Citibank, the account is a liability of the bank.

True

False

35. A store of value is the function of money when used to transfer purchasing power to the future.

True

False

36. If the Fed sells $5 million in government bonds, how much will the money supply change?

	a.	It will decrease by more than $5 million.
	b.	It will increase by $5 million.
	c.	It will decrease by $5 million.
	d.	It will increase by more than $5 million.

37. If a country begins to import more of a commodity, one can normally expect the price of the commodity to

	a.	remain unchanged in that nation.
	b.	rise and then fall below where it was originally.
	c.	rise in that nation.
	d.	drop in that nation.

Answer 1

32.TRUE,in economic termes dumping is when a country or company exports a product to foreign market at price which is less than that of the domestic market.

33.TRUE,when there is a tax cut business and households can take home more money which will increase spending and therefore demand for imports,the 2018 trade deficit was particularly large due to the tax cuts passed the previous year.

34.TRUE,checking account is the type of account in which money can be withrawn by writing a cheque and is mostly used by companies,So in technical terms bank owes them money when demanded as a result bank reports its checking account balances as current liability.

35.TRUE, store of value is the function of money in which money can saved retrieved an exchanged at a later time

36.It will decrease more than 5 million,the value of over simplified money multiplier is 1 divided by required reserve ratio.

37.the price of that commodity drops in that nation because as imports of that commodity starts increase supply increases as a result price decreases.