A country that exports less than it imports will:
A. have a current account deficit and a capital account surplus.
B. have a current account surplus and a capital account surplus.
C. have a current account deficit and a capital account deficit.
D. have a current account surplus and a capital account deficit.
Answer: A
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The benefit estimation method that uses surveys about hypothetical market conditions is
a. the averting expenditure method c. the travel cost approach b. the contingent valuation method d. the political referendum approach
Suppose you invest $100,000 in a new machine today, and you earn a $150,000 return in one year. What is the internal rate of return on this investment?
A) 10 percent B) 25 percent C) 50 percent D) 100 percent
Possible sources of economies of scale (size) within a production plant include:
a. specialization in the use of capital and labor b. imperfections in the labor market c. transportation costs d. a and b e. a and c
Suppose the Fed's primary goal is price stability and it aims to keep the inflation rate at 2%. If the inflation rate rose above 2%, what should it do?
A) pursue an expansionary monetary policy B) pursue a contractionary monetary policy C) reduce the required reserve ratio D) impose a temporary ceiling on the federal funds rate