Trade deficits or trade surpluses can work out well or poorly, depending on whether the corresponding flows of financial capital are wisely invested.
Select whether the statement is true or false.
A. True
B. False
A. True
This statement is true. Trade deficits or trade surpluses can work out well or poorly, depending on whether the corresponding flows of financial capital are wisely invested.
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Which expression below matches most closely the way economists go about testing their models?
A) "Consistency is the hobgoblin of small minds." B) "Seeing the results is the only way to know if you are right." C) "A bird in the hand is worth two in the bush." D) "In the long run we are all dead."
The cost or benefit of a market activity borne by a third party is
A. A government directive. B. An externality. C. Black-market economic activity. D. A monopoly.
In measuring Gross Domestic Product, goods produced by foreign firms in the United States are
A. not counted, but goods produced by American firms in foreign countries. B. counted, and so are goods produced by American firms in foreign countries. C. counted, but goods produced by American firms in foreign countries are not counted. D. not counted, and goods produced by American firms in foreign countries are also not counted.
A classical economist believes that
A) if the economy was left alone, it would rarely operate at full employment. B) the economy is self-regulating and always at full employment. C) the economy is self-regulating and will normally, though not always, operate at full employment if monetary policy is not erratic. D) the economy is self-regulating and will normally, though not always, operate at full employment if fiscal policy is not erratic.