An American buys a Japanese car, paying by credit card. How would this be accounted for in the balance of paymentsof Japan? A) a credit in the current account and a debit in the current account B) a credit in the current account and a debit in the financial account C) a debit in the financial account and a credit in the financial account D) a debit in the current account and a credit in the financial account
In an open economy, if private savings equals domestic investment, then a government (public) saving must be equal to A) government tax revenue B) domestic consumption C) current account surplus D) government expenditure
Suppose prices in the U.S. increase. If euro prices are constant and with no change in the nominal exchange rate, the euro has undergone: A) Real appreciation B) Real depreciation C) Nominal appreciation D) Nominal depreciation E) None of these
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