If the current account balance is -100 billion, net interest = 0, ...

[burton19126]

If the current account balance is -100 billion, net interest = 0, net transfers = 0, then
 
  A) the country is loaning abroad.
  B) there was an increase in net foreign assets.
  C) exports are greater than imports.
  D) the capital and financial account balance must be +100 billion.
  E) imports are greater than exports.

Question 2

Based on the model of the money market, if the Federal Reserve increases the reserve requirement, the equilibrium interest rate should
 
  A) stay the same.
  B) increase.
  C) decrease.
  D) increase to the same extent that the demand for money increases.

[beccamahon]

Answer to Question 1

E

Answer to Question 2

B

[burton19126]

Thank you

[beccamahon]

Happy to help you