Explain the automatic correction mechanism that drives a country's current account balance to zero
The foreign exchange market will depreciate the exchange rate of economies with negative balances on
current account. As their exchange rates fall, exports will rise and imports will fall until, eventually, a zero
balance on current account is achieved.
Economics
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If the government regulates a natural monopoly by forcing the firm to set price equal to marginal cost,
A) the firm will earn a negative economic profit. B) the firm will earn zero economic profit. C) the firm will earn a fair economic profit. D) the firm will earn a positive and large economic profit.
Economics
Bonds are a form of debt
Indicate whether the statement is true or false
Economics