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
Related Mcqs:
- The argument that U.S current account deficits cause net job losses for Americans ?
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 - 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 - Which of the following is referred by the phrase trade balance ?
A. Income from export
B. Difference between imports and exports
C. Income from imports
D. All of them - To what does the phrase terms of trade refer ?
A. the currency exchange rate
B. the difference between the value of visible exports and visible imports
C. The government’s policies to increase exports
D. the rate at which exports are exchanged for imports - The short run, as economists use the phrase, in characterized by ?
A. at least one fixed factor of production and firms neither leaving nor entering the industry.
B. no variable inputs – that is, all of the factors of production are fixed
C. all inputs being variable
D. a period where the law of diminishing returns does not hold - The short run, as economists use the phrase, is characterized by ?
A. a period where the law of diminishing returns does not hold.
B. at least one fixed factor of production and firms neither leaving nor entering the industry
C. all inputs being variable
D. no variable inputs – that is all of the factors of production are fixed - The policy cartel on debt reduction refers to the_______________?
A. screening of debtors based on their regional location
B. World Bank requiring LDCs seconded by a DC to get loan reduction
C. loan denial to crisis-stricken highly indebted countries
D. None of the above - Credit risk refers to a bond’s ?
A. Probability of default
B. Price-earnings ratio
C. dividend
D. tax treatment - ________ refers to the price charged for products sold to a subsidiary to a multinational corporation b another subsidiary in another country?
A. marginal cost pricing
B. full cost pricing
C. price discrimination
D. transfer pricing - Fiscal Policy refers to ?
A. The government regulation of financial intermediaries
B. The spending and taxing policies used by the government to influence the economy
C. The actions of the central bank in controlling the money supply
D. The government’s attitude to taxation
