"Although the United States is running a large current account deficit, it is still ranked as a major international net lender." Is the previous statement correct or incorrect? Briefly explain your answer
What will be an ideal response?
The statement is incorrect. Aside from changes in the official settlements account, any nation that is running a current account deficit must be paying for the excess of imports over exports by borrowing from abroad. The United States is no exception and with its large current account deficits, the United States is a large net borrower from abroad.
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An equilibrium in a game in which players pursue their own self-interests and do not cooperate is called a
A) dominant strategy equilibrium. B) prisoner's dilemma equilibrium. C) noncooperative equilibrium. D) cartel equilibrium.
__________ bonds are municipal bonds that are backed by the general taxing power of the state or local government
A) General obligation B) Revenue C) Tax-anticipation D) Bond-anticipation
If the price of a Toyota Camry is Y2,000,000 and the price of a Ford Fusion is $20,000, according to the law of one price, the exchange rate between the yen and the dollar should be:
A) Y100 = $1 B) $100 = Y1 C) Y1,980,000=$1 D) the law of one price does not apply since the goods are differentiated
At the long-run profit-maximizing output level of a monopolistic competitor, all economies of scale are realized
a. True b. False Indicate whether the statement is true or false