When there is political instability in another country, the United States can expect
A) an increase in the financial account balance due to an increase in the current account.
B) an increase in the financial account balance due to the movement of assets to the U.S.
C) a decrease in the balance of payments due to a decrease in official reserve transactions.
D) a decrease in the balance of payments due to a decrease in the demand for goods and services.
Answer: B
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During the twentieth century, the largest budget deficits as a percentage of GDP occurred
A) during the 1980s. B) during the Vietnam war. C) during the 1990s. D) during World Wars I and II.
In the United States from 1949 to 2010, the vast majority of economic growth has been a result of the contribution from
A) capital. B) labor. C) total factor productivity. D) Capital, labor, and total factor productivity have contributed about equally to economic growth.
Suppose the own price elasticity of demand for good X is ?0.5, and the price of good X increases by 10 percent. We would expect the quantity demanded of good X to:
A. decrease by 5 percent. B. increase by 20 percent. C. increase by 5 percent. D. decrease by 20 percent.
An increase in price will lead to an increase in quantity supplied. This statement is
A. the law of supply. B. the law of demand. C. a normative statement. D. untrue always.