When the current account is in deficit, the capital account must
A. be balanced.
B. be zero.
C. not add to the deficit.
D. have an equal and offsetting surplus.
D. have an equal and offsetting surplus.
You might also like to view...
Susan works 60 hours a week while Rachel works 20 hours because she is unable to find full-time work. Which of the following statements is true?
a. Susan is likely to work for an extra hour without a pay hike. b. Rachel is unlikely to give up another hour's leisure without a pay hike. c. Susan's opportunity cost of leisure is likely to be lower than Rachel's. d. Susan is unlikely to give up another hour's leisure without a pay hike.
Under a 100-percent-reserve banking system, banks do not influence the supply of money
a. True b. False Indicate whether the statement is true or false
The law requires that FICA be paid ______.
a. completely by workers b. completely by employers c. completely by the government d. by both workers and employers
In contrast to the long run, in the short run
a) changes in wages may lag behind changes in employment b) the economy produces at full capacity c) GDP follows a steady trend without fluctuations d) the aggregate supply curve is vertical e) the quantity of money has no effect on output