Question
Consider the following statements about the balance of
payments (BoP): 1. BoP records all transactions between residents of a country and the rest of the world. 2. A current account surplus means a country imports more goods than it exports. 3. BoP always balances as it includes current account, capital account, and errors and omissions. Which of the above statements are correct?Solution
BoP records all international transactions (statement 1). A current account surplus indicates more exports than imports (statement 2 is incorrect). By definition, BoP always balances (statement 3).
When a firm’s decision to produce decreases the wellbeing of others, but the firm does not compensate those others. It is a case of______.
...Which of the following is not a test related to Heteroscedasticity?
India traditionally runs a large Merchandise Trade Deficit (Goods). What is the key component that typically counteracts this to keep the Current Accoun...
If the economy is operating at point C, the opportunity cost of producing an additional 20 units of bacon is
Under a fixed exchange rate system with perfect capital mobility, what happens when the government increases its spending?
An unbiased coin is tossed until a head appears. The expected number of tosses required is
Consider a closed economy wherein
C = 0.60 Yd  , t = 0.25 , I = 900 – 30i , G = 800, L = 0.20 Y – 50i , M/P = 500
Where in Yd = Dis...
In an open economy, ceteris paribus, If the marginal propensity to import increases, what will be the impact on Income Multiplier?
In the foreign exchange market price of US Dollar rises from â‚ą 60 to â‚ą 61. This means that_____
