Differentiate between the current account balance and the capital account balance
The current account balance includes international purchases and sales of goods and services, cross-border interest and dividend payments, and cross-border gifts to and from both private individuals and governments. The capital account balance includes purchases and sales of financial assets to and from citizens and companies of other countries.
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What type of profit can a firm in monopolistic competition make in the long run? Explain your answer
What will be an ideal response?
If the price of potato chips increases, the demand for potato-chip dip will
a. remain unchanged but the quantity demanded will increase b. increase, because the goods are substitutes c. decrease, because the goods are substitutes d. decrease, because the goods are complements e. increase, because the goods are complements