If the U.S. current account balance is -500 billion and the capital and financial account balance is +510 billion
A) the U.S. official settlements account balance is 10 billion.
B) the U.S. government's holdings of foreign currency increases by 10 billion.
C) foreign investment in the United States is smaller than the U.S. investment abroad.
D) U.S. exports are greater than U.S. imports.
Question 2
If an increase in the monetary base of 8 billion increases the quantity of money by 64 billion, then the money multiplier is equal to ________.
A) 64 billion
B) 8
C) 8 billion
D) 1/8
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