The merchandise trade balance is the value of a nation's:
a. merchandise and service exports plus merchandise and service imports.
b. merchandise exports subtracted from capital inflows.
c. merchandise imports subtracted from merchandise exports.
d. merchandise imports plus net capital inflows.
c
You might also like to view...
Rational expectation theory implies that accurately anticipated change in aggregate demand: a. will increase RGDP in the long run
b. will affect RGDP and inflation only in the long run. c. may affect RGDP but not nominal GDP. d. will tend to be offset by the actions of input suppliers as they react to their inflation expectations.
Assume that the central bank purchases government securities in the open market. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the real GDP and current international transactions in the context of the Three-Sector-Model?
a. Real GDP rises, and current international transactions become more positive (or less negative). b. Real GDP rises, and current international transactions become more negative (or less positive). c. Real GDP and current international transactions remain the same. d. Real GDP rises, and current international transactions remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
The Chunnel auto tunnel allows motorists to travel between England and France. As an alternative, there is ferry service across the English Channel. What would happen in the market for ferry service if fees for using the Chunnel were increased?
A) The demand for ferry service would increase. B) The demand for ferry service would decrease. C) There would be an upward movement along the demand curve for transits through the Chunnel. D) There would be a downward movement along the demand curve for transits through the Chunnel.
Market supply is obtained by
A. summing the amount demanded by individual consumers at various prices. B. summing the amount supplied by individual producers at various prices. C. observing how the supply curve shifts. D. the law of supply.