A. is true by definition in all possible circumstances
B. is supported by recent U.S history
C. focuses only on the overall economy and is thus always true
D. fails to recognize that a current account deficit is matched by an equal inflow of foreign funds which finances employment increasing investment spending
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 - 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 - 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 Phrase “twin deficits” refers to ?
A. A country’s trade deficit and its government budget deficit
B. The fact that if a country has a trade deficit, its trading partners must also have trade deficits
C. the equality of a country’s saving deficit and its investment deficit
D. a country’s trade deficit and its net capital outflow deficit - An unemployed salesperson has been offered a job paying Rs500 a week. He turns that job down and continues to search for another job that pays more. The cost of this continued search is ?
A. the Rs500 weekly salary that he has forgone to search for another job
B. The Rs500 weekly salary that he has forgone and the monetary costs incurred by continuing to search
C. Rs difference between the weekly salary he finally accepts and the Rs500 weekly salary that he has forgone
D. Rs0, since he is currently unemployed - 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 - International trade tends to cause welfare losses to at least some groups in a country ?
A. The less mobile the country’s resources
B. The more mobile the country’s resources
C. The lower the country’s initial living standard
The higher the country’s initial living standard - Account is format banking, brokerage or business relationship established to provide for regular services. dealings and other financial transactions. Which of the following phenomenon(s) are also referred by term, Account ?
A. A precise list or enumeration of financial transactions
B. Money deposited for checking savings or breakage use
C. A customer having business or credit relationship with a firm
D. All of these - The national security argument for protection is more likely to be valid when ?
A. The purpose is to maintain protection for an indefinite time period
B. The industry is characterized by increasing returns to scale
C. The economy operates during a recession
D. The protected industry provides invaluable goods during periods of war - Which one of the following is not an argument in support of the UK joining the EMU ?
A. None of these arguments they are all arguments in support of the UK joining the UMU
B. The characteristics of the UK housing market make UK consumers expenditure very sensitive to changes in interest rates
C. The UK risks exclusion from the Euroland capital market with damaging consequences with damaging
D. The UK needs to be a member of the EMU in order to continue to attract such large share of foreign direct investment in EU countries
