In basic terms, the current account is equal to
A) imports plus exports.
B) savings minus consumption.
C) exports minus imports.
D) savings plus exports.
C
You might also like to view...
Friedman's theory of money demand differs from Keynes' in that
a. Friedman assumes that the demand for money is highly elastic while Keynes assumes money demand is inelastic. b. Friedman assumes that the money demand function is highly stable while Keynes assumes it is unstable. c. Friedman assumes that there is only a speculative demand for money while Keynes also considers the precautionary and transactionary demands for money. d. Friedman assumes that the proportion of income held in the form of money is constant while Keynes believes it varies. e. both b and d.
Suppose the First National Bank acquires $500,000 in new deposits and the required reserve ratio is 12 percent. Which of the following is true?
a. Required reserves on the new deposits are $12,000. b. Excess reserves on the new deposits are $500,000. c. Required reserves on the new deposits are $60,000. d. Excess reserves on the new deposits are $12,000. e. Total reserves on the new deposits are $440,000.
A competitive market is in long-run equilibrium. If demand decreases, we can be certain that price will
a. fall in the short run. All firms will shut down, and some of them will exit the industry. Price will then rise to reach the new long-run equilibrium. b. fall in the short run. No firms will shut down, but some of them will exit the industry. Price will then rise to reach the new long-run equilibrium. c. fall in the short run. All, some, or no firms will shut down, and some of them will exit the industry. Price will then rise to reach the new long-run equilibrium. d. not fall in the short run because firms will exit to maintain the price.
The poverty trap refers to:
A. richer countries spiraling downward into poverty if they invest in the wrong industries. B. richer countries spiraling downward into poverty if they fail to invest enough in physical capital. C. poorer countries having a harder time buying the things that will end their poverty. D. All of these describe the poverty trap.