Which of the following combinations is plausible, as it relates to a nation's balance of payments?
A. Current account = $+40 billion; capital account = $+20 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 = $-50
billion.
B. Current account = $-50 billion; capital account = $+20 billion; financial account = $+30
billion.
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"When a company's depreciation is larger than its gross investment, net investment becomes negative and the firm's capital stock decreases." Is the previous statement correct or incorrect? Explain your answer
What will be an ideal response?
To pay for a current account deficit, a country can
A) borrow money from abroad. B) lend money abroad. C) increase official reserves to cover the shortfall. D) transfer money from the capital account to the official settlements account.
A subsidy to buyers has been placed in the market in the graph shown. The result is:
A. a higher quantity bought and sold at a higher price.
B. customers are worse off than before the subsidy.
C. producers are worse off than before the subsidy.
D. None of these is true.
Over the last 30 years, the income gap between the rich and the poor has declined
a. True b. False Indicate whether the statement is true or false