Which of the following is TRUE of the current account balance?
A) Monetary expansion has no effect on the current account balance.
B) Monetary expansion decreases the current account balance.
C) Fiscal expansion increases the current account balance.
D) Fiscal expansion has no effect on the current account balance.
E) Monetary expansion increases the current account balance.
E
You might also like to view...
If new capital increases labor productivity, the supply of labor ________ and the demand for labor ________
A) stays the same; increases B) increases; increases C) increases; decreases D) decreases; stays the same
Explain the "Unfair Trade Practices" argument as a case against free trade
What will be an ideal response?
Signaling is
a. actions by the informed party to reveal her true risks b. actions by the informed party to conceal her true risks c. actions by the uninformed party to uncover the true risks d. actions by the uninformed party to conceal the true risks
A small country is considering imposing a tariff on imported wine at the rate of $5 per bottle. Economists have estimated the following based on this tariff amount: World price of wine (free trade):$20 per bottleDomestic production (free trade):500,000 bottlesDomestic production (after tariff):600,000 bottlesDomestic consumption (free trade):750,000 bottlesDomestic consumption (after tariff):650,000 bottles Before the tariff is imposed, the country imports ________ bottles of wine, but following the imposition of the tariff, the country will import ________ bottles of wine.
A. 750,000; 650,000 B. 150,000; 50,000 C. 100,000; 100,000 D. 250,000; 50,000