If there is a major problem in a country that leads to the rapid withdrawal of foreign investment, this is known as
A) adverse selection crisis. B) moral hazard.
C) international financial crisis. D) portfolio investment crisis.
C
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When the U.S. current account has a deficit, international payments from the United States ________ U.S. international receipts
To cover the current account deficit, there must be a ________ in the combined capital and financial account and official settlements account. A) equal; surplus B) are less than; deficit C) exceed; surplus D) are less than; surplus E) exceed; deficit
In a world with money and bonds only
A) it is not risky to hold money. B) it is risky to hold money. C) risk is an important factor in the demand for money. D) there is no relationship between risk and holding money. E) assets become meaningless.
Suppose the private sector wishes to hold a constant level of real high-powered money
This means that with an ongoing inflation of p percent, each year the government treasury can obtain goods from the private sector in exchange for ________ p times the existing high-powered money, a government revenue source called ________. A) creating, seignorage B) creating, transfer payments C) collecting, seignorage D) collecting, transfer payments
National income accountants can avoid multiple counting by:
a) including transfer payments in their calculations. b) only counting final goods. c) counting both intermediate and final goods. d) only counting intermediate goods.