Podcast
Questions and Answers
In the national income accounting identity for an open economy, what does 𝐶 + 𝐼 represent?
In the national income accounting identity for an open economy, what does 𝐶 + 𝐼 represent?
- Net foreign expenditure
- Total domestic expenditure (correct)
- Government spending
- Exports
What happens to the current account and trade balance when a country exports more than it imports?
What happens to the current account and trade balance when a country exports more than it imports?
- Current account < 0, trade balance < 0
- Current account < 0, trade balance > 0
- Current account > 0, trade balance > 0 (correct)
- Current account > 0, trade balance < 0
Which factor contributes to national income through unilateral transfers?
Which factor contributes to national income through unilateral transfers?
- Domestic consumption
- Foreign investment
- Government purchases
- Pension payments from expatriate retirees (correct)
What does GDP measure?
What does GDP measure?
If production exceeds domestic expenditure, which of the following statements is true?
If production exceeds domestic expenditure, which of the following statements is true?
What is the formula for net foreign wealth in an open economy?
What is the formula for net foreign wealth in an open economy?
What does GDP equal to, based on the provided information?
What does GDP equal to, based on the provided information?
Which component equals the country's net foreign investment?
Which component equals the country's net foreign investment?
Where do transactions of financial assets appear according to the provided text?
Where do transactions of financial assets appear according to the provided text?
What records flows of goods and services and flows of financial assets across countries?
What records flows of goods and services and flows of financial assets across countries?
What are official international reserve assets a component of?
What are official international reserve assets a component of?
What does the official settlements balance represent according to the text?
What does the official settlements balance represent according to the text?
What does the National Income Accounts record?
What does the National Income Accounts record?
In the context of Gross National Product (GNP), what are factors of production?
In the context of Gross National Product (GNP), what are factors of production?
How is national income defined?
How is national income defined?
What is Gross National Product (GNP) a measure of?
What is Gross National Product (GNP) a measure of?
What does the formula: Amount of expenditure by buyers = Amount of income for sellers = Value of production signify?
What does the formula: Amount of expenditure by buyers = Amount of income for sellers = Value of production signify?
Which of the following is NOT considered a factor of production according to the text?
Which of the following is NOT considered a factor of production according to the text?
What is the impact on the balance of payments accounts when domestic assets are sold to foreigners?
What is the impact on the balance of payments accounts when domestic assets are sold to foreigners?
Why are foreign assets purchased by domestic citizens considered a debit (-) in the balance of payments accounts?
Why are foreign assets purchased by domestic citizens considered a debit (-) in the balance of payments accounts?
What is the purpose of the statistical discrepancy in the balance of payments accounts?
What is the purpose of the statistical discrepancy in the balance of payments accounts?
Which institution is responsible for managing the supply of money in an economy?
Which institution is responsible for managing the supply of money in an economy?
What is one way central banks affect macroeconomic conditions through international reserves?
What is one way central banks affect macroeconomic conditions through international reserves?
How can foreign exchange intervention by a central bank alter macroeconomic conditions?
How can foreign exchange intervention by a central bank alter macroeconomic conditions?
