The current account balance tabulates the value of a country's exports of goods and services minus the value of its imports of goods and services
a. True
b. False
Indicate whether the statement is true or false
True
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Assume the government reduces government spending. What is the first round effect on the components of the balance of payments (assume low international capital mobility and fixed exchange rates; also assume that before the government action all the components were 0)? a. Current international transactions balance and reserves account become positive; net nonreserve international
borrowing/lending balance becomes negative. b. Current international transactions balance becomes positive; net nonreserve international borrowing/lending balance and reserves account become negative. c. Net nonreserve international borrowing/lending balance becomes positive; current international transactions balance and reserves account becomes negative. d. Net nonreserve international borrowing/lending balance and reserves account become positive; current international transactions balance becomes negative. e. Reserves account becomes positive; current international transactions balance and net nonreserve international borrowing/lending balance become negative.
The central feature of the Bretton Woods system was
A. the use of an adjustable pegged exchange-rate regime. B. official encouragement for one-way speculative gambles. C. a prohibition against the use of exchange controls. D. the use of a floating exchange-rate regime.
If you like Oreos more than Chips Ahoy but like Nutter Butters more than Oreos, by the property of transitivity you like
A. Oreos more than Nutter Butters. B. Nutter Butters more than Chips Ahoy. C. Chips Ahoy more than Nutter Butters. D. Nutter Butters more than Oreos.
An increase in the aggregate expenditures schedule ________.
A. decreases aggregate demand by the amount of the increase in aggregate expenditures B. increases aggregate demand by the amount of the initial increase in aggregate expenditures times the multiplier C. decreases aggregate demand by the amount of the initial increase in aggregate expenditures times the multiplier D. increases aggregate demand by the amount of the increase in aggregate expenditures only