While according to the model the current account balance will be countercyclical, the balance can also decline due to:
A) a temporary positive shock like a positive harvest
B) a less developed country having a high capital stock.
C) a temporary increase in government purchases as in war time.
D) all of the above.
Correct Answer:
Verified
Q16: The real current account balance equals:
A)net foreign
Q17: A higher current account deficit is caused
Q18: The difference between real GDP in a
Q19: The balance on the current account is:
A)real
Q20: Net real asset income from abroad is:
A)rt-1•Bft-1/P.
B)Yt
Q22: While according to the model the current
Q23: The trade balance is:
A)the balance on the
Q24: While according to the model the current
Q25: In the market clearing model with world
Q26: While according to the model the current
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