Which of the following statements about the balance of payments accounts is CORRECT?
A) The current account must be greater than the capital and financial account.
B) The sum of all three accounts is always zero.
C) The official settlements account is typically larger than both the capital and financial account and the current account.
D) Typically the capital and financial account is near zero because it equals the difference between the current account and the official settlements account.
B
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In the above figure, if the real interest rate is 8, there is
A) underproduction in this economy. B) a surplus of loanable funds. C) a shortage of loanable funds. D) a shortage in available funds for investment.
The balanced budget multiplier says that
A. An increase in government spending paid for by a tax increase of equal size has no effect on aggregate demand. B. An increase in government spending must be paid for by a tax cut of equal size. C. An increase in government spending paid for by a tax increase of equal size shifts aggregate demand leftward. D. An increase in government spending paid for by a tax increase of equal size shifts aggregate demand rightward.
The structural stagnation hypothesis provides a general explanation for why:
A. demand-side policies have been successful in the economic recovery in 2010-12. B. the economy is experiencing such a strong recovery. C. a bubble occurred in the housing market. D. the economy is experiencing a weak recovery.
The common measure of wealth used in calculating the distribution of wealth includes
A) the amount an individual will not receive during retirement. B) workers' claims on private pension funds. C) financial assets. D) human capital.