If a nation has a current account deficit and it does not have to make any inpayments or outpayments of official reserves, it must have a:
A. surplus in its capital and financial account.
B. balance of payments deficit.
C. balance of payments surplus.
D. deficit in its capital and financial account.
A. surplus in its capital and financial account.
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A public good is a good or service for which consumption by one person makes consumption by others impossible.
Answer the following statement true (T) or false (F)
Over the past two decades anti-trust policy has become:
A. non-existent. B. more permissive. C. differentiated. D. more restrictive.
The chief difference between the M1 and M2 measures of the money supply is:
A. M2 includes assets with a lower liquidity than those in M1. B. M1 is a broader, more comprehensive measure. C. the supply of M1 exceeds the supply of M2. D. M2 excludes currency.
Gloria works for a museum in a large city with many other museums. Her boss proposes that the museum should raise the price of admission to increase revenues. Gloria was a good student in her economics principles course. How should she advise her boss?
What will be an ideal response?