A nation can finance a deficit on its current account with
A. a surplus on its capital account.
B. a deficit on its capital account.
C. official purchases of foreign currencies with its own currency.
D. purchases of gold from foreign currencies with its own currency.
A. a surplus on its capital account.
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To find aggregate planned expenditures, which of the following must be added to consumption expenditure?
i. net exports ii. investment iii. government expenditure on goods and services A) i only B) ii only C) iii only D) i and ii E) i, ii, and iii
In the short run:
A. all factors of production are fixed. B. all factors of production are variable. C. some factors of production are variable, while at least one factor of production is fixed. D. None of these are correct.
In order for money to be an effective medium of exchange, it is important to have it serve as a unit of account.
Answer the following statement true (T) or false (F)
In the above figure, the long-run equilibrium real GDP is
A. $10 trillion. B. $11 trillion. C. $12 trillion D. not displayed.