Which of the following statements is true?
A. Current account balance = -(capital account balance).
B. A country's balance on current account equals its balance on capital account.
C. If the market for a nation's currency is in equilibrium, a capital account surplus necessarily means a current account surplus.
D. Capital accounts and current accounts balances are determined by governments.
Ans: A. Current account balance = -(capital account balance).
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The time-inconsistency problem involves the ________
A) difficulties of traveling across time zones B) tendency to deviate from good long-run plans in the short-run C) use of adaptive expectations in building an economic model D) time lag between the implementation of policy and its ultimate and complete results
A perfectly competitive firm trying to maximize profits in the short run will expand output
A. until total revenue equals total cost. B. until marginal cost equals average variable cost. C. until marginal cost begins to rise. D. as long as marginal revenue is greater than marginal cost.