The Table Above Gives Data on the U

question 81

Multiple Choice

$$\begin{array} { l r } \text { Variables } & \text { (billions of dollars) } \\\hline \text { Imports of goods and services } & 1,000 \\\text { Exports of goods and services } & 900 \\\text { Net interest } & - 100 \\\text { Net transfers } & 0 \\\text { Foreign investment in the United States } & 1,190 \\\text { U.S. investment abroad } & 1,000 \\\text { Decrease in U.S. official reserves } & 10\end{array}$$
The table above gives data on the U.S.balance of payments in 2015.
-The current account balance is

• A) -$100 billion.
• B) $100 billion.
• C) -$200 billion.
• D) $200 billion.
• E) $1,900 billion.

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Definitions:

Phillips Curve

An economic theory suggesting an inverse relationship between rates of unemployment and corresponding rates of inflation, indicating trade-offs between these two economic variables.

Rate of Unemployment

The segment of the labor force that is without a job and actively on the look out for employment opportunities.

Passive Approach

A strategy, particularly in investing or management, where minimal intervention or action is taken, often to maintain the current state or to avoid risk.

Recessionary Gap

The difference between the actual output of an economy and its potential output at full employment, indicating underutilization of resources.