A deficit in the current account
A. tends to cause a deficit in the financial account.
B. is accompanied by an equal amount of surplus in the financial account or in official international reserves.
C. does not affect the financial account or official international reserves.
D. is the result of increasing exports and decreasing imports.
Answer: B
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What did Malthus say about population growth?
A. Population growth is a huge problem if housing and medical care don't also increase. B. The population would grow faster than food supplies, which would be a recipe for disaster. C. Population growth is not a problem if food production keeps up, and Malthus predicted that it would. D. Population growth is the key to a nation's economic growth.
The difference between exports and imports of goods is the
A. balance of trade. B. balance of paying. C. balance of payments. D. balance of accounts.
Since 1950, the labor force participation rate of older Americans has primarily
A. Decreased because of the low marginal tax rate implicit in the Social Security system. B. Increased because of the high marginal tax rate implicit in the Social Security system. C. Increased because of the low marginal tax rate implicit in the Social Security system. D. Decreased because of the high marginal tax rate implicit in the Social Security system.
Which balance of payments account records payments for imports and exports?
A) reserves account B) capital and financial account C) current account D) official settlements account E) trade account