During the last year, foreign investment in a country was $500 billion and the country's investment abroad was $600 billion. Which of the following statements is true?
A) The country has a current account deficit of $1,100 billion.
B) The country has net borrowing of $100 billion.
C) The country has a current account deficit of $100 billion.
D) The country has a capital and financial account deficit of $1,100 billion.
E) The country has net lending of $100 billion.
E
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Assume the most typical shapes for the demand and supply in a competitive market. Suppose that demand falls and supply increases. Which of the following statements is correct?
a. The equilibrium price will fall; the equilibrium quantity may rise or fall. b. The equilibrium price will rise; the equilibrium quantity may rise or fall. c. The equilibrium quantity will fall; the equilibrium price may rise or fall. d. The equilibrium quantity will rise; the equilibrium price may rise or fall. e. The equilibrium price will fall; the equilibrium quantity will not change.
The market-day supply curve is
a. horizontal, reflecting the fact that the quantity supplied can increase infinitely b. vertical, reflecting the fact that the quantity supplied cannot change c. increasing, reflecting the positive relationship between price and quantity d. decreasing, reflecting the inverse relationship between price and quantity e. flatter than the market demand curve