The current account deficits incurred by the United States in the 1990s and early 2000s were caused, in the opinion of many economists, by
A) federal budget deficits.
B) a sharp decline in private saving.
C) "flight to quality" as foreign investors favored U.S. investments.
D) Both B and C are correct.
D
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Answer the next question on the basis of the following consolidated balance sheet of the commercial banking system. Assume that the reserve requirement is 10%. All figures are in billions.Assets (billions of dollars)Liabilities & Net Worth (billions of dollars)Reserves$60Checkable deposits$600Securities140Stock shares260Loans260 Property400 Suppose the Fed wants to increase the money supply by $400 billion to drive down interest rates and stimulate the economy. Assuming that the money multiplier is operating to full effect, to accomplish the desired increase, the Fed could ________.
A. sell $40 billion of U.S. securities to the banks B. sell $20 billion of U.S. securities to the banks C. buy $20 billion of U.S. securities from the banks D. buy $40 billion of U.S. securities from the banks
What are the most important characteristics that have shaped Brazil's economic and social progress during the last three decades?
What will be an ideal response?
Stock market wealth decreases. What is the impact on aggregate expenditures and income?
A) Both increase. B) Both decrease. C) Aggregate expenditure increases and income decreases. D) Aggregate expenditure decreases and income increases.
A ________ pays the owner a fixed coupon payment every year until the maturity date, when the ________ value is repaid
A) coupon bond; discount B) discount bond; discount C) coupon bond; face D) discount bond; face