Suppose Cavland's Exports Equal $400 Billion and Its Imports Equal

question 103

Multiple Choice

Suppose Cavland's exports equal $400 billion and its imports equal $500 billion.
Foreigners purchased $200 billion worth of assets in Cavland. What is Cavland's
Balance on its capital account?

• A) $100 billion
• B) -$100 billion
• C) $300 billion
• D) -$300 billion

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Definitions:

Unemployment Rates

The fraction representing individuals in the labor force who do not have employment but are actively job hunting.

Unemployment Insurance

A government program that provides temporary financial assistance to workers who have lost their jobs through no fault of their own.

Minimum-Wage Law

Legislation that establishes the lowest hourly wage that employers can legally pay their workers.

Equilibrium Wage

The wage rate at which the quantity of labor demanded by employers equals the quantity of labor supplied by workers.