Macroeconomics and Private Financial Account Assignment

Macroeconomics and Private Financial Account Assignment Words: 367

That both the current account (CA) and the private financial account (FAA) ere in surplus. Question 2 Which ONE of the following variables is a stock variable? A. GAP. B. Net external debt. C. The government budget deficit. D. A nation’s trade surplus. Question 3 If the current account of the Euro zone is in surplus by ban, its capital- and financial account is in surplus by ban, and errors and omissions are a negative 81 ban, what has happened to foreign exchange reserves? A. They have increased by ban. B. They remain unchanged. C.

They have decreased by ban. D. They have decreased by ban. Question 4 In Bordered, consumption is 750, the government budget deficit is 20, total fiscal revenues equal 440, the current account is In surplus by 10, and total private saving equals 220. Which ONE of the following is true? A. GAP 1320. B. GAP is 1260. C. Net private saving is -50. D. Net private saving is 30. Question 5 In the circular flow of spending, which ONE of the following items does NOT constitute an increase of the flow Of spending/income? A. Government purchases of goods and services. . Business investment spending. C. Spending on imported goods. D. Government spending on transfers. Question 6 Consider the following statements: If there is a surplus in the current account, and private investment exceeds private savings, the tax revenues collected by the government must be higher than government expenditure rest. II. The gross domestic product is equal to the net domestic product plus taxes. A. Both statements are true. B. Statement is true and statement II is false. C. Statement I is false and statement II is true. D. Both statements are false.

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Question 7 What is the difference between gross domestic product (GAP) and gross national income (IN)? A. GAP is a location-based measure, whereas IN is an ownership-based measure of economic activity. B. GAP is measured in current prices, whereas IN is measured in constant prices. C. GAP is limited to market transactions, whereas IN includes imputed values for non-market economic activities. D. GAP is a flow variable, whereas IN is a stock variable. Open question: Exercise 5 from the book. Extra questions: Exercises 6 and 10 from the book.

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