Suppose there was a substantial increase in political instability in the rest of the world. What would be the effects on the U.S. current account? Explain
What will be an ideal response?
Increased instability in the rest of the world would lead to capital flight out of the unstable areas. This will mean the capital account balance will be more in surplus and the current account balance more in deficit.
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Why did the U.S. government use rationing for some foods and consumer goods during World War II?
a. to guarantee each civilian a minimum standard of living in wartime b. to keep sellers from raising prices on necessary goods c. to earn more money to support the military d. because the English government had also declared rationing
Which of the following describes a difference between allocative efficiency and productive efficiency in a perfectly competitive market?
A) Allocative efficiency is achieved only in the short run. Productive efficiency is achieved only in the long run. B) Allocative efficiency is achieved only in the long run. Productive efficiency is achieved in the short run and the long run. C) Allocative efficiency is achieved in the short run and the long run. Productive efficiency is achieved only in the long run. D) Allocative efficiency is achieved only in the long run. Productive efficiency is achieved only in the short run.