Which of the following statements is true?
(a) A country runs a current account deficit if it exports more goods and services than it imports;
(b) The sum of the current and capital accounts must be zero;
(c) If both the current and capital accounts are in surplus, the exchange rate must appreciate;
(d) None of the above are true.
Answer: (d) None ofthe above are true.
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It was illegal for Microsoft to contract with computer manufacturers to pay for Microsoft operating systems for all the computers they produced, rather than paying for only the computers on which Microsoft operating systems were installed
Indicate whether the statement is true or false
An increase in the real risk-free interest rate causes the:
a. Preferred asset ratio for currency in circulation (C/D) to fall, which increases the quantity of real loanable funds supplied. b. Preferred asset ratio for customary reserves (U/D) to rise, which increases the quantity of real loanable funds supplied. c. Preferred asset ratio for near money (N/D) to fall, which increases the quantity of real loanable funds supplied. e. None of the above.