If the exports are $1.5 trillion, imports are $2 trillion, short-term investment to and from the U.S. exactly balances, and taxes and private payments to and from the U.S. also exactly balance, the capital account balance is a

A. deficit of $3.5 trillion.
B. surplus of $3.5 trillion.
C. surplus of $.5 trillion.
D. deficit of $.5 trillion.


Answer: C

Economics

You might also like to view...

The table below shows data for Indonesia

2009 2010 Real GDP growth rate 4.5 6.0 Inflation rate 4.8 5.7 Assuming the rate of velocity change is constant, the money growth rate in Indonesia was A) 0.3 percent in 2009. B) 11.7 percent in 2010. C) -0.3 percent in 2009. D) 5.7 percent in 2010.

Economics

Which of the following is a disadvantage of the corporation compared to the sole proprietorship?

a. limited liability b. difficulty raising start-up money c. lack of profitability d. corporate income is taxed twice e. corporations are more vulnerable in the case of the death of an owner

Economics

Riva crafts and sells hard cider as a part-time job. She can bottle and sell four cases in a week. She is considering hiring her friend Atul to help her. Atul can bottle and sell three cases per week. What is the maximum total output possible if Riva hires Atul?

a. 3 cases b. 4 cases c. 7 cases d. 11 cases

Economics

If businesses are optimistic about future sales, the short-run aggregate supply curve will shift leftward

Indicate whether the statement is true or false

Economics