A current account surplus
A) poses a problem if domestic savings are being invested more profitably abroad than they would be at home.
B) may pose no problem if domestic savings are being invested more profitably abroad than they would be at home.
C) may pose no problem if domestic savings are being invested less profitably abroad than they would be at home.
D) there is no relation between current account surplus and between savings and investment.
E) poses a problem if domestic savings are being invested less profitably abroad than they would be at home.
B
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If the government wishes to increase GDP by $1,200b, and the MPC is 0.75, it should:
A. increase its spending by $300b. B. decrease its spending by $900b. C. increase its spending by $900b. D. decrease its spending by $300b.
If demand is estimated to be Qd = 240 - 6P ,the inverse demand function is
A. Qd = 240 - 3P. B. P = 240 - Q. C. Qd = 40 - P. D. Qd = 240 - 12P. E. P = 40 - 0.1667Q.