A deficit in the current account means:
a. Actually, a deficit in the current account is impossible. It must equal zero.
b. Imports of goods and services exceed exports of goods and services.
c. The sum of the financial and capital accounts is positive.
d. The sum of exports of goods and services plus net international income is negative.
e. The sum of the financial, capital, and reserve accounts is positive.
.C
You might also like to view...
If we were to compare the monopolistically competitive firm's long-run outcome to that of a perfectly competitive one, we would conclude that the monopolistically competitive firm:
A. creates less consumer surplus. B. produces more output. C. earns the same profit as a perfectly competitive firm. D. All of these statements are true.
In constructing the short-run aggregate supply curve, we define the short run as the period in which: a. the price level is constant
b. output is fixed. c. profit is constant. d. the costs of some resources are fixed. e. the economic growth rate is less than 4 percent.
The larger the marginal propensity to consume (MPC), the larger the percentage of disposable income that people consume rather than save, and the larger is the ultimate increase in real GDP from an initial increase in aggregate expenditure such as government spending
Indicate whether the statement is true or false
A consequence of adverse selection is:
A. buyers make irrational decisions because they lack information. B. sellers gain surplus they would have lost with complete information. C. transactions do not take place that would have been possible if the parties had the same information. D. buyers gain surplus they would have lost with complete information.