During a recession:
a. Net exports tend to rise.
b. Consumption tends to rise.
c. Net exports remain unchanged.
d. Businesses tend to invest more in new plant and equipment.
e. Inventories tend to fall as businesses sell them off.
Question 2
Of the following balance of payments measures, which one shows bestwhether there are speculative financial capital flows from the nation?
a. Balance on goods & services.
b. Balance on goods, services, and net income.
c. Overall balance.
d. Financial account.
e. Capital account.
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