Current account is given by the equation:
A) CA = IM - EX (measured in terms of domestic output).
B) CA = IM - EX (measured in terms of foreign output).
C) CA = EX - IM (measured in terms of domestic output).
D) CA = EX - IM (measured in terms of foreign output).
E) CA = EX + IM (measured in terms of domestic output).
C
Economics
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Government spending and taxes
A) do not change aggregate demand. B) are an important component of aggregate supply. C) do not play a big role in determining GDP. D) are a major determinant of aggregate demand. E) cannot affect the price level.
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Like tariffs, quotas tend to lead to
A) higher prices and reduced imports. B) increased government revenue. C) increased consumer surplus. D) All of the above.
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