________ reflects a use of loanable funds, while ________ ...

[arivle123]

________ reflects a use of loanable funds, while ________ reflects a supply of loanable funds.
 
  A) The government budget deficit; private saving.
  B) International borrowing; a government budget deficit.
  C) International investment; business investment.
  D) A government budget surplus; a government budget deficit.
  E) Business investment; the government budget deficit.

Question 2

Name and briefly describe the three balance of payments accounts.
 
  What will be an ideal response?

[sultansheikh]

Answer to Question 1

A

Answer to Question 2

The current account is a record of international receipts and payments for imports, exports, net interest and net transfers. The capital and financial account is a record of net foreign investment, that is, investment in the United States minus U.S. investment abroad. The official settlements account is a record of the change in U.S. official reserves.