Suppose that Venezuela experiences significant capital outflows after a recent election. If the nation had flexible exchange rates, these flows would have had the following effect on the financial account and monetary base
a. Financial account would rise and reserves account would fall.
b. Financial account would not change and reserves account would fall.
c. Financial account would not change and reserves account would not change.
d. Financial account would fall and monetary base would not change.
e. Financial account would fall and reserves account would rise.
.D
Economics
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Refer to the above figure. If real disposable income is less than $5,000, then saving is
A) negative. B) 0. C) positive. D) none of the above: cannot be determined with the given information.
Economics
If an individual earns $1,500 a month and spends it evenly throughout the month, transaction balances will average
A) $50 per month. B) $750 per month. C) $1500 per month. D) $3000 per month.
Economics