Use the following table of U.S. balance of payments accounts to answer the next question.Current AccountFinancial AccountCapital AccountCreditDebitCreditDebitCreditDebit$45 billion$60 billion$72 billion$52 billion$7 billion$12 billionSuppose the U.S. exports $10 billion of coal to France. Which of the following statements is true?
A. The increase in the financial account credit of $10 billion will reduce the capital account credit by $2 billion and the current account credit by $8 billion.
B. The increase in the capital account debit of $10 billion will increase the financial account debit by $10 billion as well.
C. The increase in the current account debit of $10 billion will be offset by an increase in the capital account of $10 billion.
D. The increase in the current account credit causes an increase in the financial and capital account surpluses of $5 billion each.
Answer: D
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Assume that the actual deficit is $150 billion with the economy well below potential output and that the level of economic activity rose to its potential level while tax revenues increased by $50 billion and transfer payments fell by $20 billion
Then, what is the structural deficit? a. $180 billion b. $120 billion c. $220 billion d. $80 billion e. $100 billion
The elasticity of demand is
A) measured in money (e.g., dollars). B) measured in units of the good (e.g., slices of pizza). C) unitless. D) measured in money/unit (e.g., 1.50 $/slice of pizza).