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Author Question: If the current account balance is -100 billion, net interest = 0, net transfers = 0, then A) the ... (Read 71 times)

burton19126

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on: Jun 30, 2018
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.


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beccamahon

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

E

Answer to Question 2

B


burton19126

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Reply #2 on: Jun 30, 2018
Thank you :)


beccamahon

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Reply #3 on: Jun 30, 2018
Happy to help you


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