Suppose that Venezuela experiences significant capital outflows after a recent election. If the nation had fixed exchange rates, what effect would these flows have had on Venezuela's overall balance and reserves account?
a. Overall balance would rise and reserves account would fall.
b. Overall balance would not change and reserves account would fall.
c. Overall balance would fall and reserves account would rise.
d. Overall balance would fall and reserves account would fall.
e. Overall balance would fall and reserves account would rise.
.C
You might also like to view...
Which of the following expressions is correct for a competitive firm?
a. profit = (quantity of output) x (price - average total cost) b. marginal revenue = (change in total revenue)/(quantity of output) c. average total cost = total variable cost/quantity of output d. average revenue = (marginal revenue) x (quantity of output)
Sticky prices in oligopoly markets are
A. represented by the kinked demand curve model. B. typical of cartels. C. most common for highly differentiated products. D. a result of price discrimination.
There are not enough of four goods to satisfy the wants of people. For good A, this is true when the price is $100. This is true for good B at a price of $10, for good C at a price of $1, and for good D at a price of zero. Which situation reflects
scarcity rather than shortage? A) A B) B C) C D) D
Movement from the lower to the upper range of a downward-sloping straight-line demand curve indicates that demand is becoming
A. easier to estimate. B. more inelastic. C. harder to estimate. D. more elastic.