6. If the U.S. runs a current account deficitnext year, which of the following arenecessarily true:A) U.S. will have to run a governmentbudget deficitB) The Central Bank of China will have tobuy U.S. treasury bondsC) The U.S. will import more goods andservices than it exportsD) U.S. national saving will be less than U.S.national investment

Current account deficit means the income earned is lesser than the expenses incurred. this can be…

Answered: 6. If the U.S. runs a current account…

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6. If the U.S. runs a current account deficit next year, which of the following are necessarily true:

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

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Balance of Payments

BOP is categorized into the following three components:

Question

6. If the U.S. runs a current account deficit
next year, which of the following are
necessarily true:
A) U.S. will have to run a government
budget deficit
B) The Central Bank of China will have to
buy U.S. treasury bonds
C) The U.S. will import more goods and
services than it exports
D) U.S. national saving will be less than U.S.
national investment

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Consider the following table for a seven-year period: Returns Year U.S. Treasury Bills Inflation 3.55% -1.17% 1234567 3.40 4.30 4.72 2.52 1.40 1.13 Average real return -2.31 -1.21 0.63 -6.45 -9.37 -1.32 What was the average real return for Treasury bills for this time period? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) %
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