When a country faces a current account deficit, it also faces: A: a services trade deficit. B: a capital account deficit. C: a capital account surplus. D: a merchandise trade deficit.

If the government deficit rises and private saving and investment do not change much ,the current account surplus must fall by roughly the same account as the increase in the fiscal deficit.

Suppose the only revenue taken in by the government is in the form of income tax, and the tax rate is 10 percent. If aggregate income is $800 billion, and government outlays are $100 billion then the government budget has A: a deficit of $20 billion. B: a surplus of $20 billion. C: neither a surplus nor a deficit. D: a deficit of $80 billion.

Over the last twenty years, the U.S. has generally had a current account ________ and a capital account ________. A: surplus, surplus B: surplus, deficit C: deficit, surplus D: deficit, deficit

If you are willing to pay $20 for a shirt but you only have to pay $16, the $4 difference is: A: your consumer surplus. B: the producer’s deficit. C: your consumer deficit. D: the producer’s surplus.

And we've actually been able to$2 million of the deficit, so we're down to about a $1 million deficit right now.

When the total export volume is larger than the total import volume, the balance is called trade deficit.

An increase in the government ________ reduces the government's ________. A: budget deficit; debt B: budget surplus; debt C: debt; budget deficit D: None of the above answers is correct.

Balance-of-payments accounts are national accounts that track both _________________ and _________________ foreigners. A: surplus to, deficit from B: receipts to, payments from C: deficit to, surplus from D: payments to, receipts from

If net taxes exceed government expenditures, the government sector has a budget ________ and government saving is ________. A: surplus; positive B: surplus; negative C: deficit; positive D: deficit; negative