The current account balance plus the financial account balance
A) equals the trade balance.
B) equals the net outflow of currency from the domestic economy.
C) will be negative during economic expansions and positive during economic contractions.
D) equals zero.
D
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Based on the figure above, international trade leads to
A) a net gain in surplus of $12.5 billion. B) a net loss of surplus of $12.5 billion. C) a net gain in surplus of $27.5 billion. D) a net loss of surplus of $15 billion. E) no net gain or loss of surplus.
If, in addition to the least squares assumptions made in the previous chapter on the simple regression model, the errors are homoskedastic, then the OLS estimator is
A) identical to the TSLS estimator. B) BLUE. C) inconsistent. D) different from the OLS estimator in the presence of heteroskedasticity.