Multiple Choice
In the two-period SOE model, if the current account surplus is initially positive and the real interest rate decreases, then
A) the current account deficit may rise or fall.
B) the current account surplus must rise.
C) the current account deficit must rise.
D) the current account surplus must fall.
E) the current account deficit must fall.
Correct Answer:
Verified
Correct Answer:
Verified
Q7: An increase in total factor productivity in
Q8: In the two-period SOE model with production,
Q9: Ricardian equivalence suggests that government budget deficits
Q10: The following are all trade agreements:<br>A) ECB,
Q11: When a country runs a current account
Q13: The national present-value budget constraint states that<br>A)
Q14: In the two period SOE model with
Q15: International trade has increased for which of
Q16: In the two-period model with default, if
Q17: If consumption increases, and government spending decreases