Suppose the balance on the financial account is -$300 billion and the balance on the capital account is +$5 billion. The size of the current account is:

Suppose that the U.S. government required firms to pay a living wage to workers in their subsidiaries or contracting firms in developing countries. As a consequence of this requirement, wages would likely _______ to the living wage and employment would likely _________.

a. rise; increase b. fall; increase c. rise; decrease d. fall; decrease

Movement of the fast-growing Asian nations through the demographic transition may have had an impact on growth rates because it

A) reduced expenditures on health care. B) reduced expenditures on pensions. C) increased savings. D) increased consumption relative to GDP. E) increased the number of retired people.