Category: The Balance of Payments

A. is true by definition in all possible circumstances
B. is supported by recent U.S history
C. focuses only on the overall economy and is thus always true
D. fails to recognize that a current account deficit is matched by an equal inflow of foreign funds which finances employment increasing investment spending

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. mean a loss of foreign exchange
B. bring foreign exchange into the country
C. indicate a surplus exist
D. exist at the bottom line after all accounts are totaled

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

A. involves receipts from foreigners
B. involves payments to foreigners
C. increases the domestic money supply
D. decreases the demand for foreign exchange

A. the U.S Department of labor
B. the U.S Department of Agriculture
C. the U.S Department of commerce
D. the council of Economic Advisers to the President

A. merchandise trade deficits
B. merchandise trade surpluses
C. capital/financial account surpluses
D. capital/financial account deficits

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

A. balance of payments
B. capital account
C. current account
D. balance of trade

A. exports and imports of financial assets
B. the current account plus capital account
C. the net export of goods and services
D. the value of merchandise exports minus imports