Name and briefly describe the three balance of payments accounts
What will be an ideal response?
The current account is a record of international receipts and payments for imports, exports, net interest and net transfers. The capital and financial account is a record of net foreign investment, that is, investment in the United States minus U.S. investment abroad. The official settlements account is a record of the change in U.S. official reserves.
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Which economists believe that fiscal policy is effective, while monetary policy may be ineffective?
a) Monetarists b) Keynesians c) Classical economists d) Fisherites
In the real business cycle model, output and employment are
a. determined by real supply-side variables. b. determined by supply and demand factors. c. always at their natural rates. d. both a and c. e. None of the above