Multiple Choice
Economic theory shows that the current account deficit is always equal to the capital account surplus.This means that
A) the federal budget must always be in balance.
B) when a country exports more goods and services than it imports, it also imports assets equal to the difference.
C) current account deficits should be avoided.
D) trade deficits tend to be eliminated automatically.
Correct Answer:
Verified
Correct Answer:
Verified
Q13: Figure 36-6<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8592/.jpg" alt="Figure 36-6
Q14: Which of the following is correct?<br>A)IM +
Q15: What is the impact of expansionary fiscal
Q16: A favorable supply shock abroad would<br>A)increase U.S.imports
Q19: International capital flows are purchases and sales
Q20: Booms or recessions in one country tend
Q21: In an open economy, the government deficit
Q22: One of the principal factors behind the
Q23: Figure 36-8<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8592/.jpg" alt="Figure 36-8
Q190: If a currency appreciates,a country's net exports<br>A)fall