In the balance of payments accounts, there will be a surplus in the financial account of a country if:?
What will be an ideal response?
?it sells more assets to individuals in other countries than the assets it buys from them.
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For a competitive equilibrium in a two-period model, all of the following must be true except
A) each consumer picks first- and second-period consumption given the real interest rate. B) there must be an equal number of borrowers and lenders. C) the government's present-value budget constraint holds. D) the credit market clears.
An excess supply of money implies an excess
a. supply of corporate stock b. demand for bonds c. supply of bonds d. demand for corporate stock e. demand for goods and services
Suppose the annual inflation rate in an economy increases from 4 percent to 10 percent. Which of the following will be an appropriate policy measure in this situation?
a. A decrease in the tax rate b. An increase in government purchases c. An open market purchase of government bonds d. An increase in the reserve requirement
Which of the following is most likely to happen as the result of lower real interest rates in the United States?
a. the dollar will depreciate on the foreign exchange market and imports will grow relative to exports. b. the dollar will appreciate on the foreign exchange market, and exports will grow relative to imports. c. the dollar will depreciate on the foreign exchange market, and exports will grow relative to imports. d. the dollar will appreciate on the foreign exchange market, and imports will grow relative to exports.