The U.S. current account records
A) transactions involving foreign investment in the United States and U.S. investment abroad.
B) transactions involving trade, interest payments, and net transfers.
C) U.S. exports but not U.S. imports, which are recorded in the capital account.
D) the current value of the balance of payments in U.S. dollars.
E) all the international transactions during the current year.
Question 2
If profits are high because the price level rose,
A) the AS curve shifts leftward.
B) it is likely the result of an increase in the real wage rate.
C) business failures rise and the quantity of real GDP supplied increases.
D) new businesses open and the quantity of real GDP supplied increases.
E) potential GDP must be decreasing.
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