If Country A's overall balance is equal to -$100 billion (minus $100 billion), then:
a. There is an excess demand for Country A's currency in the foreign exchange market that is being met by the central bank selling enough domestic currency to make up the difference.
b. There is an excess supply of Country A's currency in the foreign exchange market that is being met by the central bank buying enough domestic currency to make up the difference.
c. Country A's Overall balance cannot -$100 billion. It must equal 0.
d. Country A's Current account must equal +$100 billion.
e. Country A's Current account minus the capital account must equal +$100 billion
.B
You might also like to view...
Compared to a perfectly competitive industry, a single-price monopoly with the same costs will
A) create less consumer surplus. B) create less economic profit. C) create a deadweight loss. D) Both answers A and C are correct.
A(n) ________ variable is calculated from within the model. A(n) ________ variable can never be taken as given
A) endogenous; endogenous B) exogenous; endogenous C) endogenous; exogenous D) exogenous; exogenous E) none of the above
Real business cycle theory was introduced by
A) Milton Friedman and Robert Lucas. B) Milton Friedman and Anna Schwartz. C) Thomas Cooley and Gary Hansen. D) Finn Kydland and Edward Prescott.
If Joe and Sarah are faced with the game in the figure shown, we can see that:
This figure shows the payoffs involved when Sarah and Joe work on a school project together for a single grade. They both will enjoy a higher grade when more effort is put into the project, but they also get pleasure from goofing off and not working on the project. The payoffs can be thought of as the utility each would get from the effort they individually put forth and the grade they jointly receive.
A. Joe has a dominant strategy, but Sarah does not.
B. Sarah has a dominant strategy, but Joe does not.
C. neither student has a dominant strategy.
D. both students have a dominant strategy.