It is impossible for a country to have a current account surplus and a balance of payments deficit at the same time.
Answer the following statement true (T) or false (F)
False
Such a situation could arise if a country had a financial and capital account deficit that exceeded its current account surplus.
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As a result of the increased deficit associated with discretionary fiscal policy, _____
a. both the interest rate and real output fall b. both the interest rate and nominal output rise c. the interest rate falls and real output rises d. the interest rate rises and real output falls e. nominal output rises, real output falls, and the interest rate rises
A rightward shift in aggregate demand will cause an increase in output and price level if aggregate supply is
A. Downward-sloping to the right. B. Upward-sloping to the right. C. Horizontal. D. Vertical.
A country in which a significant fraction of domestic production takes place in foreign-owned factories and facilities is most likely a country where
A) GNP is much larger than GDP. B) GDP is much larger than GNP. C) GDP is not comparable to GDP. D) GDP is equal to GNP.
The chairman of the Federal Reserve is considered one of the most important economic positions in the world because this person has significant direct control over the conduct of:
A. international trade policy in the United States. B. fiscal policy in the United States. C. monetary policy in the United States. D. government budget in the United States.