Which of the following is not a factor explaining how deficits on current account develop?
a. high interest rates
b. budgetary deficits
c. negative balance of payments
d. low productivity
e. the country's popularity because of the strength and stability of its economy
C
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A teenager is not able to find a job because the legal minimum wage is higher than the wage that firms are willing to offer. This situation is an example of:
A. frictional unemployment. B. structural unemployment. C. cyclical unemployment. D. efficient unemployment.
The United States is a net importer of capital. This means
a. that U.S. citizens own more foreign assets than foreigners own U.S. assets b. that citizens of other countries are buying more U.S. assets than U.S. citizens are buying foreign assets c. only that U.S. citizens own foreign assets d. only that foreign citizens own U.S. assets e. either that U.S. citizens own foreign assets or that foreign citizens own U.S. assets