A current account deficit can occur if ________, all else equal
A) net national savings equals zero B) net factor income from abroad equals zero
C) net exports are negative D) net investment income is negative
C
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Refer to Figure 15-18 to answer the following questions
a. What quantity will this monopoly produce and what price will it charge? b. Suppose the government decides to regulate this monopoly and imposes a price ceiling of $25. Now what quantity will the monopoly produce and what price will it charge? c. Will every consumer who is willing to pay the ceiling price of $25 be able to buy the product? Briefly explain.
Refer to the given data, symbols, and assumptions. If migration is costless and unimpeded, the combined value of total product in the two countries will:
Symbols: Q = number of workers demanded; W = wage rate; and VTP = value of the
cumulative total product (output) of the particular number of workers.
Assumptions: (1) The current wage in Zinnia is $20 and the current wage in Marigold is $12; (2) full employment exists in both countries.
A. decline from $62 to $36.
B. decline from $120 to $70.
C. increase from $36 to $62.
D. increase from $62 to $70.