Multiple Choice
The balance of payments is zero
A) because each transaction has equal and opposite entries in the accounts.
B) because market forces ensure that this is so.
C) only if the current account balance is zero.
D) only if the capital account balance is zero.
E) if the capital inflows equal capital outflows.
Correct Answer:
Verified
Correct Answer:
Verified
Q1: Under purely flexible exchange rates,<br>A) there is
Q2: A hard peg may be achieved by<br>A)
Q4: Capital controls refer to<br>A) controls placed on
Q5: The large exchange rate depreciations which preceded
Q6: If the real exchange rate is high,
Q7: In the monetary small open-economy model with
Q8: In the monetary small open-economy model with
Q9: If a country's central bank seeks to
Q10: In the New Keynesian open economy model,
Q11: The Bretton Woods arrangement<br>A) fixed the value