Whenever there is a deficit in the current account, the capital account:
a. will be negative
b. will be positive.
c. will be zero.
d. could be negative, positive, or zero.
b
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The expected future exchange rate has ________ on the supply of dollars and has ________ on the demand for dollars
A) no effect; no effect B) an effect; no effect C) an effect; an effect D) no effect; an effect E) an effect sometimes; an effect sometimes
What is the formula for the cross elasticity of demand? The percentage change in the
A) quantity demanded divided by the percentage change in the price of a substitute or complement. B) quantity supplied divided by the percentage change in price. C) quantity demanded divided by the percentage change in price. D) quantity demanded divided by the percentage change in income. E) equilibrium quantity demanded divided by the equilibrium quantity supplied.
Commodities that last less than three years and may be consumed very quickly are called:
A) durable goods B) nondurable goods C) services D) none of the above
Refer to Figure 2.3. At a price of $10 per CD, there would be:
A. excess supply of 70 thousand CDs.
B. excess demand of 50 thousand CDs.
C. excess supply of 50 thousand CDs.
D. excess demand of 70 thousand CDs.