If the current account is in deficit, we know that
A. there is a statistical discrepancy in the surplus.
B. the merchandise trade balance is also in deficit.
C. the merchandise trade balance is in surplus.
D. the financial account is in surplus.
Answer: D
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Which of the following is an example of a capital good?
A. A metal-stamping machine used to produce cars sold to an automaker B. A new CD player sold to a teenager C. A new CD player sold to an automaker for installation in a car D. A new car sold to a family
The law of one price should hold well for
A) differentiated products. B) any individual goods traded internationally. C) homogeneous goods. D) All of the above.
While on the gold standard prior to 1914, an ounce of gold could be redeemed for ________ , after World War II it could be redeemed for ________
a. $4; $20 b. $4; $5 c. $20; $35 d. $4; $35
A movement along the production possibilities curve would imply that:
A. productivity has increased. B. productivity has declined. C. society has chosen a different set of outputs. D. the labor force has grown.