Which of the following is true of a current account surplus? a. ...

[notis]

Which of the following is true of a current account surplus?
 a. A country that is running a current account surplus will have negative net exports.
 b. A current account surplus is consistent with domestic spending being in excess of domestic production.
 c. A current account surplus means that a country is also running a net surplus in its financial account.
 d. A country can have a current account surplus only if it exports more services as compared to goods.
 e. A country that is running a current account surplus buys more bonds from the rest of the world as compared to what it sells.

Question 2

When the equation X = GDP - C- I - G yields a negative X, it represents a situation in which the country:
 a. experiences runaway inflation.
  b. experiences robust GDP growth.
  c. experiences a huge budget deficit.
  d. borrows to cover the difference between production and spending.
  e. lends to cover the difference between production and spending.

[nikmaaacs]

Answer to Question 1

e

Answer to Question 2

d