A. full employment and price stability
B. exports minus imports
C. monetary policy offsetting fiscal policy
D. exports equal to imports
Related Mcqs:
- The difference between the balance on current account and the balance on capital account is the ?
A. statistical discrepancy
B. balance of payments
C. balance of trade
D. trade deficit - The difference between a country’s balance of payments and its balance of international indebtedness?
A. is equal to official reserve transactions
B. occurs because of foreign exchange fluctuations
C. reflects statistical discrepancies
D. reflects the difference between flow and stock concepts - Starting from a position where the nation’s money demand equals the money supply and its balance of payments is in equilibrium economic theory suggests that the nation’s balance of payments would move into a surplus position if there occurred in the nation a (an) ?
A. increase in the money demand
B. decrease in the money demand
C. increase in the money demand
D. None of the above - Starting from a position where the nation’s money demand equals the money supply and its balance of payments is in equilibrium its balance of payments would move into a surplus position if there occurred in the nation a (an) ?
A. decrease in the money supply
B. increase in the money supply
C. decrease in the money demand
D. None of the above - Starting from a position of internal and external balance a reduction in aggregate demand will cause a current account ?
A. deficit
B. surplus
C. revaluation
D. devaluation - When the world Bank or IMF requires improved external balance in the short run the agency may condition its loan on expenditure switching that is ?
A. switching spending from domestic to foreign sources
B. devaluing local currencies
C. increase trade restrictions by imposing quota
D. increase government spending - Countries with chronic balance of payments deficits eventually need to borrow abroad often from the ________ as the lender of last resort?
A. U.S
B. OECD
C. IMF
D. OPEC - The balance of payment is ?
A. Balance between a nation’s expenditure on imports and its receipts from exports
B. Total sum a state owned
C. Total liabilities of a nation
D. Shortfall in budget - If there is a balance of payments deficit then in a floating exchange rate system ?
A. The external value of the currency would tend to fall
B. The external value of the currency would tend to rise
C. The injections from trade are greater then the withdrawals
D. Aggregate demand is increasing - The balance of trade can only worsen if income ____ relative to absorption ?
A. increases
B. decreases
C. does not change
D. None of the above
