Multiple Choice
If a French company exports $2 million of machinery to Italy and French tourists spend $2 million at Italian beaches,the French merchandise trade balance ________,and the French capital and financial account balance ________.
A) rises; rises
B) rises; is unchanged
C) is unchanged; is unchanged
D) is unchanged; rises
Correct Answer:

Verified
Correct Answer:
Verified
Q14: If business taxes rise in a large
Q21: In a large open economy,the home country's
Q22: If a Japanese company sells 200 VCRs
Q23: Consider a small open economy with desired
Q26: A large open economy increases its desired
Q31: The current account balance consists of<br>A)the trade
Q48: When there are two large open economies,the
Q70: Suppose an economy has output of 2100,government
Q95: Real domestic interest rates would increase in
Q103: A large open economy<br>A)dominates world trade in