Economic theory shows that the current account deficit is always equal to the capital account surplus. This means that
A. the federal budget must always be in balance.
B. when a country exports more goods and services than it imports, it also imports assets equal to the difference.
C. current account deficits should be avoided.
D. trade deficits tend to be eliminated automatically.
Answer: B
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Refer to the scenario above. if the investor plans to invest a sum of $4,000, the net present value of Option C is:
A) -$1,236.36. B) -$337.56. C) $516.80. D) $1,800.79.
Under the liquidity premium theory, the expectation that future short-term rates will be constant results in a yield curve that
A) is flat. B) slopes upward. C) slopes downward. D) is flat, slopes upward, or slopes downward, depending on the size of the term premium at each maturity.
As concentration in an industry increases, the value of the Herfindahl index falls
a. True b. False
Exchange rates are for currency what:
a. c, d and e. b. discounts are for sales. c. interest is for capital. d. prices are for apples. e. wages are for labor.