Question: In the open macroeconomy framework a "balance of payments deficit" implies thatO a. National income must increase to increase importsO b. There are excessive capital inflows into the economyOC Central bank reserves decline.Current account surplus exceeds capital account deficit.O .Capital account surplus exceeds current account deficit. Question: Which of the following policies CANNOT be used by the low-income WTO members to promote industrialisation?Oa.State owned companies to establish infant industries.b.Selective subsidies as long as they are within the limits of "negligibility" provision.O C. Tariffs that do not exceed "bound" tariff rates.O d. Horizontally applied subsidiesO e. Selective export subsidies.

Question: In the open macroeconomy framework a "balance of payments deficit" implies that O a. National income must increase to increase imports O b. There are excessive capital inflows into the economy C. Central bank reserves decline. Od. Current account surplus exceeds capital account deficit.

Question: In the open macroeconomy framework a "balance of payments deficit" implies that O a. National income must increase to increase imports O b. There are excessive capital inflows into the economy C. Central bank reserves decline. Od. Current account surplus exceeds capital account deficit.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A6 describe the changes of current, capital, and financial account balances. Is the deficit of current account financed by the surplus of capital and financial accounts for that country? Or is an opposite pattern found in a specific time period? Do you observe the inverse relationship between current and capital/financial account balances for these countries?
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