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Author Question: How do the capital account and the current account differ? What will be an ideal ... (Read 67 times)

theo

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on: Jun 29, 2018
How do the capital account and the current account differ?
 
  What will be an ideal response?

Question 2

Bobby spends 100 per month on pizza and CDs. His utility from these goods is shown in the table above. The price of a pizza is 10 and the price of a CD is 20. If Bobby maximizes utility from these goods, his total utility is ________ units.
 
  A) 705
  B) 750
  C) 770
  D) 880


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uniquea123

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Reply #1 on: Jun 29, 2018
Answer to Question 1

The current account and the capital account differ in what is recorded in each. The current account records exports, imports, net interest, and net transfers. The capital account records foreign investment in the United States and U.S. investment abroad.

Answer to Question 2

C


theo

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Reply #2 on: Jun 29, 2018
Correct answers!


uniquea123

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Reply #3 on: Jun 29, 2018
Great! Please up vote :D


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