The balance of payments is in equilibrium when
A) the sum of the current account balance and capital account balance is zero.
B) net exports are zero.
C) net foreign investment is zero.
D) real foreign investment is equal to net exports.
A
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In Figure 10-5 above, suppose that the population growth rate declines. This causes a movement of the steady-state point such as from points
A) A to B. B) D to B. C) D to C. D) A to C. E) A to D.
If the shifts in AD that will result from policy changes are fully and accurately anticipated, a decrease in government purchases or an increase in taxes would result in which of the following in the short run?
a. a higher level of real output and a higher price level b. a higher level of real output but no change in the price level c. a higher price level and a reduced level of real output d. none of the above.