Author Question: If net interest and net transfers are 0, and a nation's purchases of foreign goods and services are ... (Read 51 times)

strangeaffliction · **on:** Jun 29, 2018

If net interest and net transfers are 0, and a nation's purchases of foreign goods and services are 3.5 billion while its sales of goods and services to foreigners are 4.5 billion

A) it has a 1 billion surplus in its balance of payments.
B) it has a 1 billion deficit in its current account.
C) it has a 1 billion surplus in its current account.
D) its capital and financial account shows a surplus.

Question 2

An increase in the nominal interest rate creates a ________ the money demand curve, and an increase in real GDP creates a ________ the money demand curve.

A) movement down along; leftward shift of
B) rightward shift of; movement up along
C) movement up along; rightward shift of
D) leftward shift of; rightward shift of