Current account deficits are offset by A) the liquidity ...

[wrbasek0]

Current account deficits are offset by
 
  A) the liquidity balances.
  B) capital account surpluses.
  C) the basic balance.
  D) balance of trade surpluses.

Question 2

Import substitution policies make use of
 
  A) tariffs that discourage goods from entering a country.
  B) quotas applied to goods that are shipped abroad.
  C) production subsidies granted to industries with comparative advantage.
  D) tax breaks granted to industries with comparative advantage.
  E) production facilities provided by industrialized countries.

[kkenney]

Answer to Question 1

B

Answer to Question 2

A