This topic contains a solution. Click here to go to the answer

Author Question: If the current account balance is -100 billion, net interest = 0, net transfers = 0, then A) the ... (Read 115 times)

burton19126

  • Hero Member
  • *****
  • Posts: 532
If the current account balance is -100 billion, net interest = 0, net transfers = 0, then
 
  A) the country is loaning abroad.
  B) there was an increase in net foreign assets.
  C) exports are greater than imports.
  D) the capital and financial account balance must be +100 billion.
  E) imports are greater than exports.

Question 2

Based on the model of the money market, if the Federal Reserve increases the reserve requirement, the equilibrium interest rate should
 
  A) stay the same.
  B) increase.
  C) decrease.
  D) increase to the same extent that the demand for money increases.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

beccamahon

  • Sr. Member
  • ****
  • Posts: 338
Answer to Question 1

E

Answer to Question 2

B





 

Did you know?

A seasonal flu vaccine is the best way to reduce the chances you will get seasonal influenza and spread it to others.

Did you know?

Intradermal injections are somewhat difficult to correctly administer because the skin layers are so thin that it is easy to accidentally punch through to the deeper subcutaneous layer.

Did you know?

Eating food that has been cooked with poppy seeds may cause you to fail a drug screening test, because the seeds contain enough opiate alkaloids to register as a positive.

Did you know?

Persons who overdose with cardiac glycosides have a better chance of overall survival if they can survive the first 24 hours after the overdose.

Did you know?

Cancer has been around as long as humankind, but only in the second half of the twentieth century did the number of cancer cases explode.

For a complete list of videos, visit our video library