A. reduce its stock of foreign assets
B. increase its stock of foreign assets
C. increases its savings
D. increases its foreign currency reserves
Related Mcqs:
- A capital account surplus might be expected to cause a current account deficit because the associated ?
A. capital outflow would cause the nation’s currency to depreciate contributing to a trade deficit
B. capital inflow would cause the nation’s currency to depreciate contributing to a trade deficit
C. capital inflow would cause the nation’s currency to appreciate contributing to a trade deficit
D. capital outflow would cause the nation’s currency to appreciate contributing to a trade deficit - What could a government do to correct the current account deficit ?
A. Reduce the deficit on the balance of trade
B. Reduce the repayment of loans
C. Reduce the surplus on the capital account
D. Reduce the volume of exports - Current account deficit are offset by______________?
A. merchandise trade deficits
B. merchandise trade surpluses
C. capital/financial account surpluses
D. capital/financial account deficits - A nation wishing to reduce its current account deficit would be advised to ?
A. engage in more government spending
B. reduce government taxes
C. increases private investment spending
D. decrease domestic consumption - A nation will a current account deficit will be ?
A. lending more money to other nations
B. experiencing a surplus in exports of goods an services
C. reducing its indebtedness to other nations
D. going further into debt with other nations - If Japan runs current account deficit and exchange rates are floating?
A. Japanese exports become more expensive to foreign buyers
B. Japanese exports become less expensive for foreign buyers
C. Japanese imports become less expensive for German buyers
D. Japanese imports become more prestigious to German buyers - 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 - Assume that Country A is relatively abundant in labor and Country B is relatively abundant in land Note that wages are the returns to labor and rents are the returns to land According to the factor price equalization theorem, once Country A begins specializing according to comparative advantage and trading with Country B: A. wages and rents should fall in Country A B. wages and rents should rise in Country A C. wages should rise and rents should fall in Country A D. wages should fall and rents should raise in Country A ?
XA. wages and rents should fall in Country A
B. wages and rents should rise in Country A
C. wages should rise and rents should fall in Country A
D. wages should fall and rents should raise in Country A - Fiscal deficit in the budget means ?
A. Revenue deficit plus the net borrowings of the government
B. Budgetary deficits plus the net borrowings of the government
C. Capital deficit plus revenue deficit
D. Primary deficit minus capital deficit - A budgetary deficit means ?
A. Total expenditure is more than total revenue
B. Current expenditure is more than current revenue
C. Capital expenditure is more than capital revenue
D. Total expenditure is more than current revenue
