What is the relationship among the current account, the financial account, and the balance of payments?
What will be an ideal response?
Leaving aside the statistical discrepancy and the capital account, both of which are small, the current account plus the financial account equals the balance of payments.
You might also like to view...
Federal funds market rate is: a. the rate at which central bank provides funds to commercial banks
b. the rate charged by banks on loans to the public. c. the rate charged on loans from one bank to another provided to meet reserve requirement. d. higher than the discount rate.
The magnification of small changes in spending into larger changes in output and income is produced by:
A. the average propensity to consume. B. saving. C. the multiplier effect. D. the average propensity to save.
The conclusion that firms in oligopoly always produce where price exceeds marginal cost is true for all models of oligopoly except the
A. Cournot model. B. contestable market model. C. price-leadership model. D. collusive oligopoly model.
An increase in GDP can result from an increase in
A. productivity. B. physical capital. C. the labor supply. D. all of the above