If the Current Account Balance Is Negative, Net Interest Is

question 36

Multiple Choice

If the current account balance is negative, net interest is $100 billion and net transfers are -$100 billion, then

• A) imports exceed exports.
• B) the official settlements account must be negative.
• C) real GDP exceeds potential GDP.
• D) the official settlements account must be positive.
• E) exports exceed imports.

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Definitions:

Majority Norm

The standard or typical behaviors, attitudes, and beliefs adopted by the majority of members within a social group or society.

Pig-Headedness

A stubborn refusal to change one’s opinion or course of action, regardless of external arguments or evidence to the contrary.

Expressed Views

Opinions, thoughts, or beliefs that are communicated or made known.

Gay Rights

The legal and social movements advocating for equal rights and protections for individuals identifying as homosexual or having a sexual orientation towards the same sex.