When a country has flexible exchange rates the:
a. Capital account must be equal to and carry the opposite sign of the financial account
b. Reserves account must be positive.
c. Reserves account must be negative.
d. Current account must equal the reserves account.
e. None of the above.
.E
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The balance of trade is
A) the difference between exports and imports of goods and services. B) the difference between exports and imports of services. C) the summary record of a country's economic transactions with foreigners in a year. D) none of the above.
An increase in the confidence that car-buying consumers have in their future income will
A. decrease the demand for borrowable money. B. increase the supply of borrowable money. C. decrease the supply of borrowable money. D. increase the demand for borrowable money.
Real business cycles could be a result of
A) shocks to the aggregate supply side of the economy. B) abrupt changes in monetary policy. C) increases in the budget deficit and national debt. D) discretionary fiscal policy.
Inflation that causes an increase in the prices of goods and services will, other things being equal, tend to decrease nominal GDP
a. True b. False Indicate whether the statement is true or false