Both the ________ do not put a great deal of emphasis on the capital account.
A) absorption and monetary approaches
B) monetary and elasticities approaches
C) elasticities and absorption approaches
D) None of the above
Question 2 - If the residents of a country receive income from their foreign investments, it is counted as a
A) credit in the current account.
B) debit in the current account.
C) credit in the capital account.
D) debit in the capital account.
E) debit in either the capital or current account, depending on the type of investment income.
Question 3 - What is the source of comparative advantage in the Heckscher-Ohlin model?
What will be an ideal response?
Question 4 - Since the period following World War II (the early 1950s), the proportion of most countries' production being used in some other country
A) remained constant.
B) increased.
C) decreased.
D) fluctuated widely with no clear trend.
E) increased slightly before dropping off.
Question 5 - An example of direct foreign investment is given by
A) the sale of U.S. government bonds to foreigners.
B) the sale of General Motors bonds to foreigners.
C) the behavior of multinational corporations such as Ford.
D) all of the above.
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