Which of the Following Is True Concerning Unilateral Transfers in the U.S.balance

question 42

Multiple Choice

Which of the following is true concerning unilateral transfers in the U.S.balance of payments?

• A)Unilateral transfers have been positive since World War II.
• B)Unilateral transfers have been negative since World War II.
• C)Unilateral transfers have been negative every year since World War II except during the war in Iraq.
• D)The United States places tight restrictions on moneys being sent out of the country.
• E)Developing countries ordinarily place no restrictions on moneys being sent out of their countries.

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Definitions:

Autonomous Consumption

The level of consumption that occurs when income is zero; it represents the expenditures that consumers must make even when they have no income.

Induced Consumption

Consumer spending that increases when income increases, and decreases when income decreases, reflecting behavioral responses to changes in income.

Disposable Income

The amount of money left for households to use on saving and spending after income taxes are covered.

Savings Rate

The proportion of disposable income that is saved rather than spent by individuals or households.