Refer to the table above. Which of the following is likely to be true in this case?
A) Laborland's terms of trade will improve.
B) Laborland's economy will go into a recession.
C) There will be a surplus in Laborland's financial account.
D) There will be a deficit in laborland's financial account.
C
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All other factors equal, as nominal interest rates increase, checking account balances should:
A. remain constant. B. be converted to cash. C. decrease. D. increase.
All of the following are sources of economic growth except
A. increases in human capital. B. an increase in the savings rate. C. an increase in consumption spending to stimulate production. D. increases in physical capital.
Suppose that the current exchange rate between the dollar and peso is $1 equals 10 pesos. If a firm in Mexico wanted to purchase $100,000 worth of U.S. televisions, how many pesos must they exchange?
A) 10,000 pesos B) 100,000 pesos C) 1,000,000 pesos D) 11,000,000 pesos
Starting from long-run equilibrium, an increase in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. lower; higher D. higher; potential