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Author Question: Refer to Figure 11.5. An increase in the level of investment is best illustrated by diagram A) A. ... (Read 77 times)

cmoore54

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on: Jun 30, 2018
Refer to Figure 11.5. An increase in the level of investment is best illustrated by diagram
 
  A) A. B) B. C) C. D) D.

Question 2

What happens when a country runs a current account deficit?
 
  What will be an ideal response?


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sultansheikh

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Reply #1 on: Jun 30, 2018
Answer to Question 1

C

Answer to Question 2

When a country runs a current account deficit, it is analogous to what takes place when a single household spends more than it earns. To fund this extra spending, the household, and similarly the country, either borrows or spends down assets that had previously been accumulated.


cmoore54

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Reply 2 on: Jun 30, 2018
:D TYSM

tranoy

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Reply 3 on: Yesterday
Excellent

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