How are deficit and surplus items determined in the balance of payments?
What will be an ideal response?
Any transaction that leads to a payment by a country's residents or government is a deficit item and any transaction that leads to a receipt by a country's residents or government is a surplus item.
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Scott and Cindy both produce only pizza and tacos. In one hour, Scott can produce 20 pizzas or 40 tacos. In one hour, Cindy can produce 30 pizzas or 40 tacos. Based on these data,
A) Cindy has a comparative advantage at producing tacos. B) Scott has a comparative advantage at producing tacos. C) Cindy and Scott have the same comparative advantage in producing tacos. D) neither Cindy nor Scott has a comparative advantage in producing tacos. E) Cindy and Scott have the same comparative advantage in producing pizzas.
During the 2009 euro crisis, a number of countries had private banks that had become too "big to save." Explain
What will be an ideal response?