Homework Help is Here – Start Your Trial Now!
Business
Economics
Q.1.2 A deficit on the current account of a country's balance of payments can be financed by a surplus: (1) Of exports over imports; (2) Of net gold exports; (3) On the financial account; (4) On the trade balance.

Q.1.2 A deficit on the current account of a country's balance of payments can be financed by a surplus: (1) Of exports over imports; (2) Of net gold exports; (3) On the financial account; (4) On the trade balance.

Brief Principles of Macroeconomics (MindTap Course List)
Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter14: A Macroeconomic Theory Of The Open Economy
Section: Chapter Questions
Problem 1CQQ
See similar textbooks
icon
Related questions
Question

Multiple choice question, please find the attached questions.

Q.1.2 A deficit on the current account of a country's balance of payments can be financed by a surplus: (1) Of exports over imports; (2) Of net gold exports; (3) On the financial account; (4) On the trade balance. Q.1.3 Assume that Denmark has a Gini co-efficient of 0.2. This means that it has a(n): (1) Equal distribution of income; (2) Unequal distribution of income; (3) Perfectly equal distribution of income; O The Independent Institute of Education (Pty) Ltd 2021 21 (4) Perfectly unequal distribution of income.
Transcribed Image Text:Q.1.2 A deficit on the current account of a country's balance of payments can be financed by a surplus: (1) Of exports over imports; (2) Of net gold exports; (3) On the financial account; (4) On the trade balance. Q.1.3 Assume that Denmark has a Gini co-efficient of 0.2. This means that it has a(n): (1) Equal distribution of income; (2) Unequal distribution of income; (3) Perfectly equal distribution of income; O The Independent Institute of Education (Pty) Ltd 2021 21 (4) Perfectly unequal distribution of income.
Q.1.4 News about high levels of criminal activity in South Africa discourages American tourists from visiting South Africa. This decline in the number of tourists from the USA will lead to: (1) A decrease in the demand for dollars and a subsequent depreciation of the rand against the dollar. (2) An increase in the supply of dollars (leftward shift of the supply curve) causing an appreciation of the rand against the dollar. (3) A depreciation of the rand against the dollar and a consequent decrease in the rate of inflation. (4) A depreciation of the rand against the dollar and a consequent rise in the rate of inflation. Q.1.5 An appreciation of the rand against the dollar: (1) Will worsen the current account balance but improves domestic prices; (2) Will improve the current account balance but worsen domestic prices; (3) Will improve the current account balance as well as improve domestic prices; (4) Will worsen both the balance on the current account as well as domestic prices. Q.1.6 A surplus on the current account of the balance of payments indicates that: (1) Financial inflows are less than financial outflows; (2) Imports are greater than exports; (3) Financial inflows are greater than financial outflows; (4) Exports are greater than imports.
Transcribed Image Text:Q.1.4 News about high levels of criminal activity in South Africa discourages American tourists from visiting South Africa. This decline in the number of tourists from the USA will lead to: (1) A decrease in the demand for dollars and a subsequent depreciation of the rand against the dollar. (2) An increase in the supply of dollars (leftward shift of the supply curve) causing an appreciation of the rand against the dollar. (3) A depreciation of the rand against the dollar and a consequent decrease in the rate of inflation. (4) A depreciation of the rand against the dollar and a consequent rise in the rate of inflation. Q.1.5 An appreciation of the rand against the dollar: (1) Will worsen the current account balance but improves domestic prices; (2) Will improve the current account balance but worsen domestic prices; (3) Will improve the current account balance as well as improve domestic prices; (4) Will worsen both the balance on the current account as well as domestic prices. Q.1.6 A surplus on the current account of the balance of payments indicates that: (1) Financial inflows are less than financial outflows; (2) Imports are greater than exports; (3) Financial inflows are greater than financial outflows; (4) Exports are greater than imports.
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
Recommended textbooks for you
Brief Principles of Macroeconomics (MindTap Cours…
Brief Principles of Macroeconomics (MindTap Cours…
Economics
ISBN:
9781337091985
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Macroeconomics (MindTap Course List)
Principles of Macroeconomics (MindTap Course List)
Economics
ISBN:
9781285165912
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Macroeconomics (MindTap Course List)
Principles of Macroeconomics (MindTap Course List)
Economics
ISBN:
9781305971509
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Economics 2e
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
Economics:
Economics:
Economics
ISBN:
9781285859460
Author:
BOYES, William
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS