Which one of the following statements is true?
A) Countries with strong investment opportunities should invest little at home and channel their savings into more productive investment activity abroad.
B) Countries with weak investment opportunities should invest little at home and channel their savings into more productive investment activity abroad.
C) Countries with weak investment opportunities should invest more at home.
D) Countries with weak investment opportunities should invest little abroad.
E) Countries with weak investment opportunities should invest little abroad and channel their savings into more productive investment activity domestically.
Correct Answer:
Verified
Q3: By internal balance, most economists mean
A) full
Q3: Countries where investment is relatively
A)productive should have
Q9: A current account deficit
A) will not pose
Q10: Governments prefer to avoid excessive current account
Q11: By external balance, most economists means,
A) avoiding
Q12: A sudden increase in the U.S. price
Q12: Countries with
A) strong investment opportunities should invest
Q14: Inflation can occur even under conditions of
Q19: Countries where investment is
A) relatively unproductive should
Q20: "The line distinguishing between external and internal
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