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Author Question: When a country has a current account deficit, the country A) is borrowing from abroad. B) is ... (Read 146 times)

tfester

  • Hero Member
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  • Posts: 534
on: Jun 30, 2018
When a country has a current account deficit, the country
 
  A) is borrowing from abroad.
  B) is lending abroad.
  C) must have a government budget surplus.
  D) must have a government budget deficit.

Question 2

The equilibrium real interest rate in Belgium will be
 
  A) generally above the world real interest rate.
  B) generally below the world real interest rate.
  C) equal to the world real interest rate.
  D) determined by the equilibrium between desired domestic saving and desired domestic investment.


kaylee05

  • Sr. Member
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  • Posts: 318
Reply #1 on: Jun 30, 2018
Answer to Question 1

A

Answer to Question 2

C


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