Which of the following is not a factor explaining how deficits on current account develop?
a. high interest rates
b. budgetary deficits
c. negative balance of payments
d. low productivity
e. the country's popularity because of the strength and stability of its economy
C
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Using the table above, if the current market value of the dollar is 125 francs
A) investor A holds dollars, but B and C hold francs. B) investor A holds francs, but B and C hold dollars. C) all three investors hold francs. D) all three investors hold dollars.
When the price of a good or service changes,
a. the supply curve shifts in the opposite direction. b. the demand curve shifts in the opposite direction. c. the demand curve shifts in the same direction. d. there is a movement along a given demand curve.
If demand for a good is elastic, then the price elasticity will be:
A. equal to one. B. equal to zero. C. greater than one. D. less than one.
In Figure 8.5, if this economy's inflation goal is a price level of P2 but the equilibrium price level is P3, one way to accomplish this using fiscal policy would be to
A. Decrease AS by decreasing the money supply. B. Decrease AD by decreasing income taxes. C. Increase AS by reducing government regulations. D. Decrease AD by reducing transfer payments.