When a country runs a deficit in its current account, the amount of foreign exchange that the country gets from exporting goods and services and from receipts of unilateral transfers falls short of the amount needed to pay for its imports and to make unilateral transfers. Where does the additional foreign exchange come from?
a. From domestic citizens who purchase foreign goods and services
b. From domestic citizens who invest in production facilities, real estate, or financial assets in foreign countries
c. From foreigners who invest in domestic production facilities, real estate, or financial assets, and from official government transactions in foreign currency
d. From government who buy bonds and stocks from foreigners
c
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During 2008 the supply of gasoline decreased while at the same time the demand for gasoline increased If the magnitude of the increase in demand was greater than the magnitude of the decrease in supply, then the equilibrium price of gasoline ________ and the equilibrium quantity ________.
A) increased; increased B) increased; decreased C) increased; did not change D) decreased; did not change E) did not change; increased
If e = 0.15, c = 0.07, and H = 140, the quantity of deposits at full multiplier expansion is
A) 1750.00. B) 13,333.33. C) 998.67. D) 636.36. E) 30.8.