Question : 11) Which of the following TRUE? A) A country with a : 1303563

11) Which of the following is TRUE?

A) A country with a current account surplus is earning more from its exports than it spends on imports.

B) A country could finance a current account deficit by using previously accumulated foreign wealth to pay for its imports.

C) A country with a current account deficit must be increasing its net foreign debts by the amount of the deficit.

D) We can describe the current account surplus as the difference between income and absorption.

E) All of the above are true of current account balances.

12) Over the 1980s

A) there is no question that a large increase in U.S. foreign assets did occur.

B) there is a question whether a large decrease in U.S. foreign assets did occur.

C) there is no question that a large decrease in U.S. foreign assets did occur.

D) there is no question that there was almost no change in U.S. foreign assets.

E) there is no question that rising exports exceeded U.S. foreign debt.

13) In a closed economy, national saving

A) sometimes equals investment.

B) always equals investment.

C) is always less than investment.

D) is always more than investment.

E) is never equal to investment.

14) For open economies,

A) S = I.

B) S = I + CA.

C) S = I – CA.

D) S > I + CA.

E) S < I + CA.   15) An open economy A) can save only by building up its capital stock. B) can save only by acquiring foreign wealth. C) cannot save either by building up its capital stock or by acquiring foreign wealth. D) can save either by building up its capital stock or by acquiring foreign wealth. E) can save by avoiding excessive imports.     16) A closed economy A) can save either by building up its capital stock or by acquiring foreign wealth. B) can save only by building up its capital stock. C) can save only by acquiring foreign wealth. D) cannot save either by building up its capital stock or by acquiring foreign wealth. E) can save by avoiding excessive imports.     17) Disposable income is National income A) less taxes collected from households and firms by the government. B) plus net taxes collected from households and firms by the government. C) less net taxes collected from firms by the government. D) less net taxes collected from households by the government. E) less net taxes collected from households and firms by the government.     18) Government savings, , is equal to A) T - G. B) T + G. C) T = G. D) T + G - I. E) T - G = I.     19) Which of the following is FALSE about private savings and government savings? A) SP = Y - T - C B) Unlike private saving decisions, government saving decisions are often made with an eye toward their effect on output and employment. C) Total savings (S) = SP + . D) The national income identity can help us to analyze the channels through which government saving decisions influence macroeconomic conditions. E) None of the above; all statements are true.   20) In a closed economy, private saving, , is equal to A) I - (G - T). B) I + (G - T). C) I + (G + T). D) I - (G + T). E) I + (G - T) + C.