If the current account balance is negative, net interest is $100 billion and net transfer is -$100 billion, then
A) exports exceed imports.
B) imports exceed exports.
C) the official settlements account must be positive.
D) real GDP exceeds potential GDP.
E) the official settlements account must be negative.
B
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Refer to Figure 5-16. Suppose Amit and Bree know each other's preferences so that it is not possible for one to deceive the other
Which of the following statements best describes the circumstances under which the optimal quantity of street lights could be achieved? A) The optimal quantity will be installed only if Bree pays for the entire installation cost. B) The optimal quantity will be installed only if the two parties agree to pay according to their willingness to pay as indicated by their respective demand curves. C) Because there are only two consumers, it is likely that private bargaining will result in the optimal quantity being installed. D) The optimal quantity will be installed only if the two parties split the cost of installation equally.
Market failure can occur when
A. monopoly power exists in the market. B. markets are missing. C. consumers can influence prices. D. all of these answer options are correct.
What is consumer surplus?
a) a buyer's willingness to pay, minus price b) a buyer's willingness to pay, plus price c) the price of the product minus the buyer's willingness to pay d) the price of the product plus the buyer's willingness to pay
Suppose that the government sets a maximum price for milk at $5 a gallon and the equilibrium price of a gallon is $3. How much quantity traded will this maximum price lead to?
A. the equilibrium quantity B. below the equilibrium quantity C. above the equilibrium quantity D. There is not sufficient information.