Multiple Choice
If a Japanese company sells 200 VCRs to a French company and uses the money to buy U.S.government bonds,the Japanese merchandise trade balance ________,and the Japanese capital and financial account balance ________.
A) rises; rises
B) rises; falls
C) falls; falls
D) falls; rises
Correct Answer:
Verified
Correct Answer:
Verified
Q8: Consider a large open economy that has
Q14: If business taxes rise in a large
Q21: In a large open economy,the home country's
Q23: Consider a small open economy with desired
Q26: If a French company exports $2 million
Q26: A large open economy increases its desired
Q34: Suppose output is $440 billion,government purchases are
Q63: When a temporary beneficial supply shock hits
Q71: If there is an increase in the
Q95: Real domestic interest rates would increase in