A nation with an official settlements balance of $50 billion is likely to experience a:
A) balance of payments surplus and accumulate $50 billion in international reserves
B) balance of payments deficit and accumulate $50 billion in international reserves
C) balance of payments surplus and a decline of $50 billion in international reserves
D) balance of payments deficit and a decline of $50 billion in international reserves
A
You might also like to view...
Explain why it is more difficult to determine the incidence of the corporate income tax than it is to determine the incidence of the tax on gasoline
What will be an ideal response?
If the price of Big Mac is $3.61 in the U.S. and 3.405 € in France, and PPP holds, what is the value of the euro in dollars that is implied by The Economist magazine's Big Mac index?
A) $1.060 B) $0.943 C) $1.943 D) None of the above.
A sound policy to combat a temporary liquidity surplus in the banking system would be
A) a reduction in the discount rate. B) a decrease in the discount rate. C) the purchase of government securities by the Fed under a repurchase agreement. D) the sale of government securities by the Fed under a repurchase agreement.
Which of the following statements is correct?
a. In the short run, unemployment and inflation are positively related. In the long run they are largely unrelated problems. b. Inflation and unemployment are positively related in the short run and in the long run. c. In the short run, unemployment and inflation are negatively related. In the long run they are largely unrelated problems. d. Inflation and unemployment are negatively related in the short run and in the long run.