Author Question: If a country has a current account balance of 100 billion and the official settlements account ... (Read 106 times)

bobbie · **on:** Jun 29, 2018

If a country has a current account balance of 100 billion and the official settlements account balance is zero, then the country's capital and financial account balance must be

A) negative but not necessarily equal to -100 billion.
B) equal to -100 billion.
C) equal to 100 billion.
D) positive but not necessarily equal to 100 billion.
E) zero.

Question 2

When the change in unplanned inventories is positive, then

A) planned inventories will increase in order to return to equilibrium.
B) real GDP is less than aggregate planned expenditure.
C) real GDP equals aggregate planned expenditure.
D) real GDP is larger than aggregate planned expenditure.
E) economic growth will occur as the economy returns to equilibrium.