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Which of the following are true in terms
Which of the following are true in terms of the current account balance?A.Monetary expansion increases the current accountB.Monetary expansion decreases the current accountC.Fiscal...
A current account surplus implies that
A.The country is a net lender to the rest of the worldB.The country is running a net financial account surplusC.Foreign investment in domestic securities is at very low levelsD.All...
what happens when Germany’s current account surplus
Under the price-specie-flow mechanism, what happens when Germany’s current account surplus is greater than its non-reserve financial account deficits?A.German loans will finance a...
Suppose the nation of Pecunia had a current account
What happened to Pecunia’s net foreign assets in 2013?The CA deficit indicated net foreign assets decreased by $1 billion.How would the purchase of Pecunian assets by foreign cent...
A country is said to be in balance of payments
A country is said to be in balance of payments equilibrium when the sum of its current and itsA.non-reserved financial accounts equalsB.reserved financial accounts equalsC.non-rese...
The current account is equal to
The current account is equal toA.S(p)-I + T-G B.C+I+G+X C.I+X D.T-GAnswer: A
A country’s current account
A.balance equals the change in its net foreign wealth.B.balance equals the change in its foreign wealth.C.surplus equals the change in its foreign wealth.D.deficit equals the chang...
A debit entry in the balance of payments accounts represents
A debit entry in the balance of payments accounts representsA.a transaction that includes a payment from abroad to a domestic resident.B.a transaction that includes a payment abr...
By external balance, most economists mean
A.avoiding excessive imbalances in internationalB.a balance between exports andC.a balance between trade account and serviceD.a fixed exchangeE.None of theAnswer: A
Under the gold standard era of 1870 – 1914,
A.central banks tried to have sharp fluctuations in the balance ofB.central banks tried to avoid sharp fluctuations in the current account of the balance ofC.central banks tried to...
A current account surplus
A.poses a problem if domestic savings are being invested more profitably abroad than they would be atB.may pose no problem if domestic savings are being invested more profitably ab...
The Marshall-Lerner Condition states that
A.depreciation always has a favorable effect on the currentB.import dependency reinforces the effects of depreciation on the current account.C.high elasticity of exports is suffici...






