How do recent current account deficits compare to GNP and to past ratios?
What will be an ideal response?
It is over 6 percent of GNP, much larger than it has been in the past, and the percentage has grown sharply over the last few years.
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A bank has $400 in checkable deposits, $800 in savings deposits, $700 in time deposits, $900 in loans to businesses, $300 in outstanding credit card balances, $500 in government securities, $10 in currency in its vault, and $20 in deposits at the Fed
. The bank's deposits that are part of M1 are equal to A) $1,210. B) $1,900. C) $400. D) $410. E) $530.
Using the notation Pt to designate this period's price level and Pt-1 to designate last period's price level, the formula for measuring the inflation rate from last period to this period is
A) [(Pt - Pt - 1 ) / Pt] × 100. B) [(Pt -1 - Pt) / Pt - 1] × 100. C) [(Pt - Pt - 1 ) / Pt - 1] × 100. D) [(Pt -1 - Pt) / Pt] × 100.