Multiple Choice
Which of the following is true when the expected future marginal product of capital increases?
A) The investment and the current account rise.
B) The investment rises but the current account declines.
C) The investment and the current account declines.
D) The investment declines but the current account rises.
Correct Answer:
Verified
Correct Answer:
Verified
Q15: Briefly discuss the idea of "twin deficit."
Q17: Assuming no change in the effective tax
Q18: You just read that forecasters predict Canada
Q21: If Ricardian equivalence proposition is true,a budget
Q22: The current account balance consists of<br>A)the trade
Q23: Suppose desired consumption is $10 billion and
Q24: Assume that Costa Rica,a small open economy,has
Q42: If all international factor payment flows are
Q58: Assume that an increase in Costa Rica's
Q71: If there is an increase in the