What role have remittances and direct foreign investment played in Guatemala, Costa Rica, and Honduras?

If firms in a monopolistically competitive market are incurring economic losses, which of the following statements describes the changes that occur as the market adjusts to the long-run equilibrium?

a. Each existing firm's demand curve shifts to the right. b. More firms exit the market. c. Each firm eliminates its excess capacity. d. Both a and b are correct.

Suppose that there is a current account deficit of $250 billion and a financial account surplus of $260 billion. It may be concluded that the

A) overall balance of payments is +10. B) overall balance of payments is -10. C) official reserve transaction account balance is +10. D) official reserve transaction account balance is -10.