Aside from a statistical discrepancy, any deficit in the current account is matched by
A. a surplus in the merchandise trade balance.
B. the excess of exports over imports.
C. a deficit in the capital account.
D. a surplus in the capital account.
Answer: D
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Relations between rich and poor countries is most important in
a. Marx's view of capitalist development b.dualism c. dependency theory d. Rostow's stages of development e. none of the above
When interest rates rise in the United States (with the price level fixed), the value of the dollar ________, domestic goods become ________ expensive, and net exports ________
A) falls; less; fall B) falls; more; rise C) rises; more; fall D) rises; less; fall
The market-clearing price is:
a. the price at which the market is in equilibrium. b. the price at which mutually beneficial trade take place. c. the price at which sellers earn the maximum profit. d. the price at which consumer surplus is zero.
Under ________ exchange rates, monetary policy is powerful in its effects on internal balance. This conclusion holds
A. fixed; only with perfect capital mobility. B. floating; only with low capital mobility. C. floating; with all degrees of capital mobility. D. fixed; with all degrees of capital mobility.