Suppose the current account of a country is in balance and the official settlements account equals 0. A new transaction occurs so that the current account is now in surplus, but the official settlements account does not change
From this we know that A) the balance of trade is now in surplus.
B) the government is running a budget deficit.
C) the capital and financial account is now in deficit.
D) the government must make official reserve transactions.
C
Economics
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In the long run, imports will most likely be paid for with
A) exports. B) the sale of real and financial assets. C) the extension of credit. D) higher domestic unemployment.
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What is the discount rate?
a. the amount of cash banks must keep on hand at any given time b. the discount that the fed provides per $100,000 of borrowed money c. the interest rate the Fed pays on reserves stored in the federal funds market d. the interest rate charged on reserves borrowed from the Fed’s discount window
Economics