Which of the following combinations is plausible, as it relates to a nation's balance of payments?
A. Current account = $+40 billion; capital account = $-10 billion; financial account = $-50
billion.
B. Current account = $+50 billion; capital account = $-20 billion; financial account = $+30
billion.
C. Current account = $+10 billion; capital account = $+40 billion; financial account = $+50
billion.
D. Current account = $+30 billion; capital account = $-20 billion; financial account = $-10
billion.
D. Current account = $+30 billion; capital account = $-20 billion; financial account = $-10
billion.
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The last time the U.S. Post Office raised its prices for mail service critics of the rate increase argued that the Post Office's revenues would actually decline as a result of the price increase. It can be concluded that:
A) both groups believe demand is elastic, but for different reasons. B) both groups believe demand is inelastic, but for different reasons. C) the Post Office believes demand for mail service is elastic; opponents of the price increase believe demand is inelastic. D) the Post Office believes demand for mail service is inelastic; opponents of the price increase believe demand is elastic.
Because central banks have not been willing to give up their option of intervening in the foreign exchange market, the current international financial system can best be described as a
A) variable-pegged exchange rate system. B) moving-pegged exchange rate system. C) hybrid of a fixed exchange rate and flexible exchange rate system. D) flexible-exchange, dollar-pegged exchange rate system.
According to the law of demand, when the price of shoes ________, people will consume ________ shoes.
A. rises; more B. falls; the same amount C. rises; the same amount D. falls; more
Increasing marginal cost of production explains:
A. the law of demand. B. the income effect. C. why the supply curve is upsloping. D. why the demand curve is downsloping.