The trade balance must equal the level of private and public saving in the country
Indicate whether the statement is true or false
TRUE
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In the foreign exchange market, the quantity U.S. dollars supplied is a function of:
A) the amount of imports and the level of capital outflows. B) the amount of exports and the level of capital outflows. C) the amount of exports and the level of capital inflows. D) none of the above.
Suppose the nominal exchange rate — Canadian dollar per Brazilian real — is constant
If the price level in Brazil rises by four percent, while the price level in Canada rises by eight percent, then the real exchange rate — Brazilian goods for Canadian goods — has ________ by ________ percent. A) declined; one-half B) risen; one-half C) risen; two D) declined; four
If banks faced a 100 percent reserve requirement, a decrease in banking reserves of $4 million would: a. increase the money supply by $4 million
b. increase the money supply by $400 million. c. decrease the money supply by $4 million. d. decrease the money supply by $400 million.
Which of the following correctly ranks the size of the three largest foreign currency trading centers in dollar volume?
a. 1-Paris; 2-Miami; 3-London b. 1-New York; 2-Rome; 3-Chicago c. 1-London; 2-New York; 3-Tokyo d. 1-Tokyo; 2-Los Angeles; 3-Paris