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
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 - 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 - 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 - A current account deficit means that a country may ?
A. reduce its stock of foreign assets
B. increase its stock of foreign assets
C. increases its savings
D. increases its foreign currency reserves - 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 - A current account surplus implies that ?
A. the country is a net lender to the rest of the world
B. the country is running a net capital account surplus
C. foreign investment in domestic securities is at very low levels
D. All of the above - Compared to what occurred under free trade, Mexico’s producer surplus ____ and consumer surplus ____ as a result of the subsidy Use the figure that you have plotted to calculate the amounts ?
A. decreases, decreases
B. decreases, increases
C. increases, decreases
D. increases, increases - To reduce imports, suppose that the government of Norway’s imposes a quota equal to 800 computers, Compared to what occurred under free trade, Norway’s consumers surplus will ________ and its producer surplus will _______ Can you calculate these amounts? Try plotting the information of this table on a sheet of graph paper ?
A. increase, increase
B. increase, decrease
C. decrease, increase
D. decrease, decrease
