Question

Suppose Australia’s B0∗ is negative. Based on our two-period economy model, we can conclude that Australia:...

Suppose Australia’s B0∗ is negative. Based on our two-period economy model, we can conclude that Australia:

(a) will have to run a trade (b) will have to run a trade

(c) does not have to run a country.

(d) will have to run a trade

(e) will have to run a trade

(f) does not have to run a country. balance deficit at some point. balance deficit in periods 1 and 2. trade balance deficit at some point because it is an advanced balance surplus at some point in time. balance surplus in periods 1 and 2. trade balance surplus at some point because it is an advanced

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

The answer for this MCQ is as follows:-

(f) does not have to run a country. balance deficit at some point. balance deficit in periods 1 and 2. trade balance deficit at some point because it is an advanced balance surplus at some point in time. balance surplus in periods 1 and 2. trade balance surplus at some point because it is an advanced economy.

a, b, d and e are all the same option and are incorrect since Australia does not have to run a trade since it is an advanced economy.

c is wrong.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1. In 2001, the economy of the United Kingdom exported goods worth £192 billion and services...
1. In 2001, the economy of the United Kingdom exported goods worth £192 billion and services worth another £77 billion. It imported goods worth £225 billion and services worth £66 billion. Receipts of income from abroad were £140 billion while income payments going abroad were £131 billion. Government transfers from United Kingdom to the rest of the world were £23 billion, while various U.K. government agencies received payments of £16 billion from the rest of the world. IF VALUE IS...
Suppose the following aggregate expenditure model describes the US economy: C = 1 + (8/9)Yd T...
Suppose the following aggregate expenditure model describes the US economy: C = 1 + (8/9)Yd T = (1/4)Y I = 2 G = 4 X = 3 IM = (1/3)Y where C is consumption, Yd is disposable income, T is taxes, Y is national income, I is investment, G is government spending, X is exports, and IM is imports, all in trillions $US. (a) Derive a numerical expression for aggregate expenditure (AE) as a function of Y. Calculate the equilibrium...
1. When interest rates in Australia decrease relative to interest rates in other countries, we may...
1. When interest rates in Australia decrease relative to interest rates in other countries, we may see Australian dollar Select one: a. depreciation and a decrease in net exports. b. appreciation and an increase in net exports. c. appreciation and a decrease in net exports. d. depreciation and an increase in net exports. 2. We can expect an increase in the value (appreciation) of the Australian dollar relative to Indian rupiah when Select one: a. Indian economy is going into...
If the overall balance in the balance of payments account is in _____, there can be...
If the overall balance in the balance of payments account is in _____, there can be an accumulation of official reserve assets by the country or a decrease in foreign official reserve holdings of the country's assets. surplus deficit equilibrium remission Answer: The current account balance does NOT equal: the difference between domestic product and domestic expenditure. the difference between national saving and domestic investment. net foreign investment. the difference between government saving and government investment. Answer: A nation is...
) In class, we developed a simple two-period model of dynamically efficient etraction of a nonrenewable...
) In class, we developed a simple two-period model of dynamically efficient etraction of a nonrenewable resource with a finite stock of 20 units, constant marginal extraction costs of 2.0, and constant demand given by the inverse demand function: p = 8 - 0.4 q Everything remains as before (including the 10% interest rate), except for the demand for the resource. We now change the situation in the following manner: we know in period 1 that due to technological change,...
1.    In a multiple regression model, the following coefficients were obtained: b0 = -10      b1 =...
1.    In a multiple regression model, the following coefficients were obtained: b0 = -10      b1 = 4.5     b2 = -6.0 a.    Write the equation of the estimated multiple regression model. (3 pts) b     Suppose a sample of 25 observations produces this result, SSE = 480. What is the estimated standard error of the estimate? (5 pts) 2.    Consider the following estimated sample regression equation: Y = 12 + 6X1 -- 3 X2 Determine which of the following statements are true,...
19. The method we used to determine whether a country/society was better or worse off after...
19. The method we used to determine whether a country/society was better or worse off after a change in policy or a movement towards free trade (from autarky) was a. by calculating the net effects b. by examining the total surplus c. by considering the deadweight loss triangles d. all of the above e. none of the above (not including d) ------------------------------------------------------------------------------------------------------------------------- 20. Consider the small Home country doing tariffs under PC. Which of the following statements is true? a....
1. Suppose a new search engine company is created where they rank websites based on their...
1. Suppose a new search engine company is created where they rank websites based on their factual content rather than popularity. Would there be any benefits to society? a. No, the most popular sites are the most factual sites as well. b. No, the root source is uneducated citizens and this does not help that problem. c. Yes, but the benefits would be tiny because little misinformation is shared online. d. Yes, people have limited time to educate themselves, and...
answer the following questions Q21.When the economy experiences an expansion, it is most likely the case...
answer the following questions Q21.When the economy experiences an expansion, it is most likely the case that------------------------------- GDP is increasing, unemployment is increasing, and inflation is decreasing. GDP is increasing, unemployment is decreasing, and inflation is increasing. GDP is decreasing, unemployment is decreasing, and inflation is increasing. GDP is decreasing, unemployment is decreasing, and inflation is decreasing. Q22. GDP is an important economic measurement because it provides valuable data on unemployment rates measures the combined total of all intermediate and...
I need to answer the questions based on the following article The article is Although the...
I need to answer the questions based on the following article The article is Although the virus has delayed the budget until October, Treasurer Josh Frydenberg will deliver an update on the budget and – more importantly – the economy, within the next fortnight. But last week the secretary to the Treasury dropped some big hints on what to expect. In evidence to the Senate committee inquiring into the response to the virus, Dr Steven Kennedy started with the outlook...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT