A country's balance on current account will always equal its balance on capital account
a. True
b. False
Indicate whether the statement is true or false
True
You might also like to view...
Sarah earns $40,000 per year working for a large corporation. She is thinking of quitting this job to work full time in her own business. She will invest her savings of $50,000 (which currently has an annual 10% rate of return) into the business
Her annual opportunity cost of this new business is A) $0. B) $40,000. C) $45,000. D) $90,000.
Purchasing power parity theory holds that exchange rates are set so that the price of similar goods in different countries reflects the relative interest rates in those countries.
Answer the following statement true (T) or false (F)
Section 301 cases involve allegations of
A) foreign monopoly pricing. B) foreign export subsidies. C) foreign barriers to U.S. exports. D) All of the above.
Which of the following is the best example of opportunity cost?
A) a company's expenditures on a training program for its employees B) the rate of return on a company's investment C) the amount of money that a company can earn by depositing excess funds in a money market fund D) the profit that a company forgoes when it decides to drop one product line in favor of another one