If the current account balance is negative, net interest is 100 billion and net transfer is -100 billion, then
A) exports exceed imports.
B) imports exceed exports.
C) the official settlements account must be positive.
D) real GDP exceeds potential GDP.
E) the official settlements account must be negative.
Question 2
If two variables are unrelated, their graph is
A) a curved line.
B) an upward-sloping line.
C) either a horizontal or a vertical line.
D) a downward-sloping line.
E) None of the above answers is correct because it is not possible to graph unrelated variables.