The case of New Zealand, described in the text, asks what question about the country's international debt position?
What will be an ideal response?
Fundamentally, the question is whether or not a country can sustain a current account deficit indefinitely. The answer is that, under certain conditions, yes it can.
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Which of the following is not a phase or turning point of the business cycle?
A) recession B) expansion C) shutdown D) trough
In foreign exchange markets, the demand for dollars is determined: a. solely by the level of U.S. merchandise exports
b. solely by the level of U.S. merchandise imports. c. by the level of U.S. imports and the demand for foreign assets by U.S. citizens and the U.S. government. d. by the level of U.S. exports and the demand for U.S. assets by foreigners.
If a manufacturer has a U-shaped long-run average total cost curve, then
a. it cannot correctly calculate the position of its fixed cost curve b. there is an output level such that producing one more unit increases average total cost c. there must be a large range of production over which the firm experiences constant returns to scale d. no two quantities of output can have the same average total cost e. there does not exist an output level such that producing one more unit decreases average total cost
The economy enters a period of robust economic growth that is expected to last for several years. How would this be reflected in the risk structure of interest rates?
A. A decrease in the term spread B. An increase in yields on tax-exempt bonds C. A decrease in the interest rate spread D. An inverted yield curve