Which of the following statements about the balance of payments accounts is CORRECT?
A) The current account must be greater than the capital and financial account.
B) The sum of all three accounts is always zero.
C) The official settlements account is typically larger than both the capital and financial account and the current account.
D) Typically the capital and financial account is near zero because it equals the difference between the current account and the official settlements account.
B
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Refer to Scenario 10-1. Based on the information above, what is the level of private saving in the economy?
A) $3 trillion B) $4 trillion C) $5 trillion D) $8 trillion
In reality, the long-run supply curve for a perfectly competitive market is upward sloping because:
A. of changing costs of production that firms may face. B. not all firms have identical cost structures. C. experienced firms will have different information and costs than new firms. D. All of these are true.