If the government budget is balanced, and saving is greater than investment, then the
a. current account must be in surplus.
b. current account must be in deficit.
c. current account balance must be zero.
d. capital account must be in surplus.
a
You might also like to view...
If consumers buy a large number of plug-in electric cars, the equilibrium price of electricity will ________ and the equilibrium quantity of electricity will ________
A) rise; decrease B) not change; increase C) fall; increase D) fall; decrease E) rise; increase
If there is a negative externality, and the market output is 100 units more than the socially optimal output, then it follows that
A. the external costs associated with the negative externality are greater than the marginal private costs. B. the external costs associated with the negative externality are less than the marginal private costs. C. there is market failure. D. any tax imposed on the production of the output will bring about the socially optimal output. E. none of the above
Which of the following make(s) demand for U.S. dollars in the market for foreign-currency exchange higher than otherwise?
a. a U.S. airline wanting to buy jets made in France and a Swedish hospital wanting to buy medical equipment made in the U.S. b. a U.S. airline wanting to buy jets made in France, but not a Swedish hospital wanting to buy medical equipment made in the U.S. c. a Swedish hospital wanting to buy medical equipment made in the U.S., but not a U.S. airline wanting to buy jets made in France d. neither a U.S. bank wanting to lend money to a Canadian company nor a U.S. firm wanting to buy computers made in South Korea
Which of the following helped the U.S. economy recover following the recession of 2001?
a. The U.S. government increased spending to fight the war on terror. b. A series of corporate scandals decreased consumer confidence. c. The U.S. government increased interest rates to boost saving. d. Consumers rapidly increased their purchases and increased aggregate demand.