In the current account, a deficit in the trade balance is necessarily offset by a surplus in the service balance.
Answer the following statement true (T) or false (F)
False
In the current account, a deficit in the trade balance is necessarily offset by a surplus in the capital account.
You might also like to view...
The rate-of-return regulated public utility can have incentive to price some services too high and others too low, relative to efficient prices
Indicate whether the statement is true or false
If demand increases while supply decreases, then the equilibrium price
A) always increases. B) always decreases. C) may increase, decrease, or stay the same. D) never changes.
Bank A has checkable deposits of $10 million and total reserves of $1 million. The required reserve ratio is 9 percent. The bank has required reserves of
A) $910,000. B) $90,000. C) $900,000. D) $1,000,000. E) There is not enough information provided to answer this question.
If trade is mutually beneficial, then increasing trade
A. Reduces income for workers in export industries. B. Makes countries less interdependent. C. Leads to increased output in export industries. D. Increases the welfare of producers that compete with importers.