A country has a current account surplus if
A) the value of its exports exceeds the value of its imports, assuming net income from foreign assets and net unilateral transfers have a value of zero.
B) the value of its net exports of services exceeds the value of its net exports of goods.
C) it receives more income from foreign assets than it pays to foreigners for foreign-owned domestic assets.
D) its capital inflows exceed its capital outflows.
A
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If the economy's resources are fully employed and prices are starting to rise, the Fed can ________ the money supply in an attempt to reduce inflationary pressure. If this action is well-calculated, output will ________
A) increase; rise B) increase; remain close to its potential level C) decrease; remain close to its potential level D) decrease; fall
On average, in the recessions since 1950, it has taken ________ for real GDP to return to its cyclical peak
A) about 6 months B) about 1 year C) about 18 months D) almost 2.5 years
Marge buys 5 CDs and 7 DVDs. The marginal utility of the 5th CD and the marginal utility of the 7th DVD are both equal to 30 utils. Can we say that this is the optimal combination of CDs and DVDs for Marge?
A) No. We need to know her preferences for CDs and DVDs. B) No. For this to be the optimal combination, the total utility from her purchase of CDs needs to equal the total utility from her purchase of DVDs. C) No. If this was the optimal combination, the marginal utility per dollar of the 5th CD and the 7th DVD would be equal. D) Yes.
Under perfect competition, price = MC = ATC = MR
A. only in the short run. B. only in the long run. C. in both the short run and the long run. D. in neither the short run nor the long run.