Refer to the above table. Suppose the transactions in the table are added to a balance of payments account that is already in balance. What will have to take place to keep the balance of payments in balance?
A) Nothing will have to be done as the accounts are in balance.
B) Nothing will have to be done as the accounts are in equilibrium.
C) The U.S. government will have to make official reserve transactions equal to $10,000.
D) Foreign governments will have to make official reserve transactions equal to -$10,000.
D
You might also like to view...
The price of a tomato increases and people buy more lettuce. You infer that lettuce and tomatoes are ________
A) complements B) normal goods C) substitutes D) inferior goods
The result of the Cutler-Reber study of different insurance plans was
A) increased moral hazard among the insured. B) increased adverse selection among the insured. C) asymmetric information was irrelevant among the insured. D) competition among the insured resulted in higher prices for insurance.