If a country has a current account surplus, it also has
A. an increase in its official reserve assets.
B. a financial account surplus.
C. an increase in its holding of net foreign assets.
D. a balance of payments deficit.
Answer: C
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Decreases in the value of existing assets are called:
A. capital losses. B. investment. C. capital gains. D. saving.
If Matt's disposable income increases from $4,000 to $4,500 and his level of saving increases from $200 to $325, it may be concluded that his marginal propensity to:
A. save is 0.30. B. consume is 0.80. C. consume is 0.75. D. save is 0.60.
Refer to the figure above. What is the price that a perfectly competitive firm would charge?
A) $0 B) $3 C) $6 D) $9
Classical economists traditionally believed that:
a. there are three motives for demanding money. b. a change in the money supply can affect real GDP. c. the transactions demand for money influences the velocity of money. d. the velocity of money is constant. e. the economy does not always operate at full employment.