Author Question: In part, a country's current account measures A) its current debt as opposed to its long-term ... (Read 31 times)

pane00 · **on:** Jun 29, 2018

In part, a country's current account measures

A) its current debt as opposed to its long-term debt.
B) borrowing and lending activity between the country's residents and foreigners.
C) net increases and decreases in a country's holdings of foreign currency.
D) receipts from the sale of goods and services to foreigners and payments for goods and services bought from foreigners.

Question 2

The table below shows the price index for Zimbabwe starting in 2000.

Year Price Index
2000 100.0
2001 173.4
2002 404.37
2003 1880.5
2004 8462.2
2005 28,586.6
2006 319,222.5
www.econstats.com

Which of the following statements CORRECTLY describe the behavior of prices in Zimbabwe?
I. The cost of the CPI basket increased.
II. The inflation rate was 73.4 percent between 2000 and 2001.
A) I only
B) II only
C) both I and II
D) neither I nor II