Author Question: Since 1999, the capital account has recorded A) relatively minor transactions, such as migrants' ... (Read 48 times)

Marty · **on:** Jun 29, 2018

Since 1999, the capital account has recorded

A) relatively minor transactions, such as migrants' transfers, and sales and purchases of nonproduced, nonfinancial assets.
B) transactions that affect the balance of trade or the balance of services.
C) statistical discrepancy between the current account and the financial account.
D) transactions that affect net capital flows in the economy.

Question 2

A Big Mac costs 4.00 in the United States and 9.00 reals in Brazil. If the exchange rate is 2 reals per dollar, purchasing power parity predicts that

A) the dollar will depreciate as the supply of dollars rises in the long run.
B) the dollar will appreciate in the long run as the demand for the dollars rises.
C) the dollar will appreciate as the demand for dollars falls in the long run.
D) the dollar will depreciate as the demand for dollars falls in the long run.