This preview shows pages 1–2. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: Sheet1 Page 1 (a) trade surplus. (b) trade deficit. (c) current account surplus. (d) current account deficit. Answer: A If France has a trade deficit, then (a) imports into France exceed exports from France. (b) exports from France exceed imports into France. (c) imports into the United States from France exceed exports from the United States into France. (d) imports into France from the United States exceed exports from France into the United States. Answer: A The current account balance consists of (a) the trade balance plus the services balance (b) net exports of goods and services minus net unilateral transfers (c) net exports of goods and services plus investment income from abroad plus net unilateral transfers (d) net exports of goods and services plus investment income from abroad plus net unilateral transfers minus the capital and Answer: C A capital and financial account surplus necessarily implies (a) a balance of payments surplus....
View Full Document