If goods imports are greater than goods exports, the nation is experiencing a:
a. negative balance on current account.
b. goods trade deficit.
c. capital account imbalance.
d. weakening of its currency.
e. growth in foreign reserves.
b
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A merger between a firm manufacturing radios and a firm manufacturing paper products is a
A) conglomerate merger. B) diagonal merger. C) horizontal merger. D) vertical merger.
The spot exchange rate is relevant to transactions ________
A) that require an immediate transfer of funds B) that require a future transfer of funds C) that involve a movement across state lines D) within a corporation, or between a corporate holding company and a subsidiary
According to the Taylor rule, which of the following will lead to the largest increase in the nominal federal funds rate?
A) a two percentage point increase in the target inflation rate B) a one percentage point decrease in the target inflation rate C) a one percentage point increase in output D) a two percentage point decrease in output E) a one percentage point increase in the inflation rate
Bob works for a firm that produces umbrellas. He receives payment for his labor. The firm wants to expand but lacks the capital needed for the expansion. Bob, a person of some means, provides the capital. What market(s) are these payments made in?
a. illegal market b. goods and services market c. product market d. resource market e. umbrella market