The country of Pimm exports $500 billion worth of goods and services and imports $400 billion worth of goods and services. Net interest paid abroad is $50 billion, and net transfers paid abroad are $25 billion. The current account balance is ________.

$25 billion
$975 billion
$125 billion
$175 billion

If the current account balance is -$30 billion, and the capital account balance is $25 billion, then the official settlements account balance is _______ billion, and the official reserves __________.

$5 billion; decrease
$5 billion; increase
-$5 billion; increase
-$5 billion; decrease

If, this year, a country has borrowed more from the rest of the world than it has loaned to the rest of the world but has loaned more to the rest of the world than it has borrowed from the rest of the world during its entire history, then the country is currently a _______ and also a _______.

net borrower; creditor nation
debtor nation; creditor nation
net borrower; debtor nation
debtor nation; net borrower

A country has a government sector deficit and a private sector surplus. If the government sector deficit increases, and the private sector surplus decreases, __________________.

net exports decrease
net exports increase
net exports decrease or remain constant
net exports increase, decrease, or remain constant

The table gives some of the entries in the national income and product accounts. The government sector has a _______, and the private sector has a _______.

surplus of $50 billion; deficit of $25 billion
deficit of $50 billion; deficit of $25 billion
deficit of $50 billion; surplus of $25 billion
surplus of $50 billion; surplus of $25 billion

The table gives some of the entries in the national income and product accounts. What is the value of exports?

$300 billion
$25 billion
$250 billion
-$25 billion

If the pound-dollar exchange rate changes from £0.50 per dollar to £0.55 per dollar, then the pound has _______ against the dollar and the dollar has _______ against the pound.

appreciated; depreciated
depreciated; appreciated
appreciated; appreciated
depreciated; depreciated

Suppose that a dollar buys 110 yen. If a VCR sells for 17,050 yen in Japan, the price of the VCR in dollars is ______________.

$187.55
$110
$155
$170.50

If the exchange rate between the dollar and Japanese yen is above the equilibrium exchange rate, there will be a _______ of dollars, and the exchange rate will _______.

shortage; change only when the supply curve shifts leftward
surplus; fall to the equilibrium level
surplus; change only when the demand curve shifts rightward
shortage; fall to the equilibrium level

If the expected future exchange rate falls, the exchange rate _______, and the equilibrium quantity of dollars _______.

remains constant; barely changes
falls; increases
falls; barely changes
remains constant; increases

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