The current account balance is defined as
A) the value of exports - the value of imports.
B) the amount of exported capital assets + net interest income.
C) the value of exports - the value of imports + net interest income + net transfers.
D) the difference between the import and export of official reserves.
C
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On which of the following does the neoclassical counter-revolution school most blame underdevelopment?
a. misguided government policies b. relatively rigid cultural traditions c. the legacy of colonialism d. unfair trade practices on the part of developed countries
When deciding on an appropriate course of action to counter a recessionary gap, which of the following do policy makers consider?
a. the slope of the short-run Phillips curve b. the costs of inflation and unemployment c. the efficiency of the economy's self-correcting mechanism d. All of the above are correct.