. (TCO 9) Which of the following appears as a positive item on the balance of payments account for the United States? (Points : 4) U.S. government sending aid to natural disaster victims in Asia American tourists spending money in the other countries Buying of U.S. Treasury bonds by a foreign bank Payment of stock dividends by U.S. firms to foreign shareholders 2. (TCO 9) Comparing everything that the United States owes to other nations, and what they owe to the United States, the United States is currently a(n) (Points : 4) net creditor. net debtor. international banking asset. international banking liability. 3. (TCO 9) Foreign exchange rates refer to the (Points : 4) price at which purchases and sales of foreign goods take place. movement of goods and services from one nation to another. price of one nation's currency in terms of another nation's currency. difference between exports and imports in a particular nation. 4. (TCO 9) When the exchange rate between pounds and dollars moves from $2 = 1 pound to $1 = 1 pound, we say that the dollar has (Points : 4) depreciated. appreciated. inflated. deflated. 5. (TCO 9) Which system would be accompanied by occasional currency interventions by central banks to stabilize or alter rates to avoid persistent balance of payments deficits or surpluses? (Points : 4) Gold standard Fixed exchange rates Flexible exchange rates Managed floating exchange rates 6. (TCO 8) a) Do protectionist policies benefit producers, consumers, workers, or the government? Explain. b) Explain how the "Buy American" theme hurts Americans. (Points : 40) 7. (TCO 6) a) Explain the tools used to pursue expansionary and contractionary fiscal policy. During which phases of the business cycle would each be appropriate? b) Explain what is meant by a built-in stabilizer and give two examples.