In order for the balance of payments to balance,
a. the current account balance must equal the capital account balance
b. international reserves must flow out of the country
c. international reserves must flow into the country
d. the current account balance plus the capital account balance plus the net flow of international reserves plus the statistical discrepancy must equal zero
e. the current account balance plus the capital account balance plus the net flow of international reserves must be greater than the statistical discrepancy
D
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An increase in the saving rate in a steady-state economy would cause
A) a rightward movement along the saving-per-worker curve and an increase in the capital—labor ratio. B) an upward shift in the saving-per-worker curve and an increase in the capital—labor ratio. C) a downward shift in the saving-per-worker curve and a decrease in the capital—labor ratio. D) a leftward movement along the saving-per-worker curve and a decrease in the capital—labor ratio.
Economics is primarily the study of: a. how choices are made in a world of scarcity
b. corporate balance sheets and income statements. c. how to operate a business. d. how to make money in the stock market.