Unformatted text preview: rought home our 40,000 troops in South Korea, this would contribute to a U.S. balance of payments (surplus/deficit).
44. U.S. tourists traveling in large numbers to Europe would contribute to a U.S. balance of payments (surplus/deficit).
45. The U.S. balance of payments show the balance between (all/some of) the payments the U.S. receives from foreign countries and (all/some of) the payments which we make to them.
46. If a nation’s merchandise exports are $60 billion, while its merchandise imports are $70 billion, this nation is experiencing a balance of trade (surplus/deficit) of $10 billion.
47. The (current/capital) account includes trade in currently produced goods/services [XM].
48. The (current/capital) account reflects flows of real [land, factories, etc.] and financial assets [securities].
49. There (must/must not) always be a balance of a nation’s total international payments . [includes “official reserves”]
50. A deficit on the current account tends to cause a (deficit/surplus) on the capital account. “I have a comparative advantage.” Review...
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This note was uploaded on 07/20/2012 for the course ECON 2106 at GCSU.