A deficit on the current account:
A. normally causes a surplus on the capital and financial account.
B. normally causes a deficit on the capital and financial account.
C. has no relationship to the capital and financial account.
D. means that a nation is making international transfers.
A. normally causes a surplus on the capital and financial account.
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A Canadian oil company hires geological survey services from the United States. If all else remains equal, this will
A) increase the financial account. B) decrease the current account balance. C) increase the balance of trade. D) increase net exports.
Explain why "bad cars drive out the good ones" in the market for used cars
What will be an ideal response?
If the expected inflation rate was 2.5%, the expected real interest rate was 4.0%, and the actual inflation rate turned out to be 3.2%, then the real interest rate equals
A) 1.7%. B) 3.2%. C) 3.3%. D) 4.7%.
In the allocation of resources between present and future
a. the market works imperfectly. b. the market works perfectly. c. centrally planned economies are more efficient than market economies. d. the invisible hand guarantees efficiency in market economies.