Country A's overall balance in the balance of payments equals the:
a. Current account minus the capital account.
b. Reserves account minus the current account.
c. Reserves account plus the financial account plus the current account.
d. Reserves account plus the financial/capital account.
e. Zero when central banks do not intervene in the foreign exchange market.
.E
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The profit-maximizing employment level for a monopsonist occurs where:
a. wage = MFC. b. wage = MRP. c. price = wage. d. wage = TWC. e. MRP = MFC
As the manager of a ski resort, you want to increase the number of lift tickets sold by 8 percent. Your staff economist has determined that the price elasticity of demand for lift tickets is 2. To increase sales by the desired amount, you should decrease the price of a lift ticket by:
A. 16 percent. B. 8 percent. C. 4 percent. D. 2 percent.
If firms are in Cournot equilibrium:
A. firms could increase profits by jointly increasing output. B. firms could increase profits by jointly reducing output. C. each firm could increase profits by unilaterally decreasing output. D. each firm could increase profits by unilaterally increasing output.
If a country starts with a surplus in its official settlements balance, intervention to defend a fixed exchange rate will cause
A. both the money supply and the economy to contract. B. the money supply to grow and the economy to contract. C. the money supply to expand and the economy to grow. D. the money supply to contract and the economy to grow.