Which of the following statements is correct ?

Related Mcqs:

A nation wishing to reduce its current account deficit would be advised to ?

A. engage in more government spending B. reduce government taxes C. increases private investment spending D. decrease domestic consumption...

In the calculation of gross domestic product net exports are ?

A. the sum of merchandise trade and services B. the current account plus long-term capital C. the value of merchandise exports minus imports D. short-term capital plus the basic balance...

A country’s transactions with the rest of the world are recorded in the ?

A. balance of international indebtedness B. balance of financial transactions C. balance of payments D. income statements...

All of the following are debit items in the balance of payments except ?

A. capital outflows B. merchandise exports C. private gifts to foreigners D. foreign aid granted to other nations...

The role of _______ is to direct one nation’s savings into investments of another nation?

A. merchandise trade flows B. services flows C. current account flows D. capital flows...