Answer the question on the basis of the following balance of payments data for the hypothetical nation of Econland. All figures are in billions of dollars.
(1) Goods exports +$220
(2) Goods imports -328
(3) Exports of services +54
(4) Imports of services -55
(5) Net investment income +18
(6) Net transfers -11
(7) Capital account -1
(8) Foreign purchases of Econland assets +124
(9) Econland purchases of foreign assets -21
Refer to the table above. Econland's balance on the current account shows a:
A. Deficit of $91 billion
B. Deficit of $102 billion
C. Deficit of $109 billion
D. Surplus of $109 billion
B. Deficit of $102 billion
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How can inflation affect the international competitiveness of a country?
a. Through an increase in nominal interest rates. b. Through an increase in real interest rates. c. The competitiveness is harmed by any inflation rate that is higher than in other countries, as long as it is offset by exchange rate changes. d. The competitiveness is harmed by any inflation rate that is higher than in other countries, as long as it is not offset by exchange rate changes. e. Inflation is a domestic issue and therefore does not affect the international competitiveness
What is a shortcoming of price control legislation?
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