From the mid 1980s to the present, the United States
a. had only a small current account deficit.
b. had a large capital account deficit, which in the balance of payments accounts was financed with a surplus in the current account, which in turn financed investment in excess of domestic saving.
c. has had a large current account deficit, which in the balance of payments accounts was financed with a surplus in the capital account, that in turn financed investment in excess of domestic saving.
d. None of the above
C
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An indifference curve shows combinations of goods ________
A) which the consumer prefers equally B) that are affordable C) that are inside or on the budget line D) that have the same relative price
Following the collapse of its housing and stock markets around 1990, the Japanese government ________
A) effectively managed the crisis, limiting the damage to the Japanese economy B) took only limited action in response to the crisis C) was able to rely on private initiatives in quickly reversing the course of GDP in the 1990s D) fixed the value of the yen to the Euro and pursued an aggressive monetary policy