In 2012, the capital account in the U.S. balance of payments was in:
A. deficit, and larger than the current account deficit.
B. surplus, and larger than the current account surplus.
C. balance, with no deficit or surplus.
D. deficit, and smaller than the current account deficit.
D. deficit, and smaller than the current account deficit.
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The Neoclassical Heckscher-Ohlin model assumes that all producers of any industrial product has knowledge of, and may avail itself of the same production technology available to producers in any other country
Many have flagged this identical technology assumption as unrealistic. During the past half century, the relative importance of Multinational Corporations (MNCs) in world trade has steadily increased. How would this trend affect the realism of the "identical technology" assumption?
Why assume that firms maximize profit, when it is easy to find companies that pursue other goals such as saving rain forests (Ben and Jerry's) and sponsoring Mister Rogers (Sears)?
"Walmart is a low wage firm and this indicates that it exploits its workers" which of the following should cause one to question the validity of this statement?
What will be an ideal response?
The rational expectations hypothesis suggests that
A. anticipated fiscal and monetary policy actions are not effective in stabilizing the economy. B. anticipated monetary policy actions are more powerful than fiscal policy actions. C. fiscal policy actions only work when accompanied by changes in the money supply. D. unanticipated fiscal policy actions are more powerful than monetary policy actions.