25. Suppose there are two countrics, B and C, that have no trade and no financial transac- tions with any countries except cach other. B imports a total of goods worth 10 million bollars from C, where a bollar is a unit of B's currency. B has no exports. Which of the following must be true? A. B has a capital account deficit B. C has a current account deficit C. C is buying assets from B. D. The exchange rate of collars per bollar is bigger than 1, where a collar is a unit of C's currency.

25. Suppose there are two countrics, B and C, that have no trade and no financial transac- tions with any countries except cach other. B imports a total of goods worth 10 million bollars from C, where a bollar is a unit of B's currency. B has no exports. Which of the following must be true? A. B has a capital account deficit B. C has a current account deficit C. C is buying assets from B. D. The exchange rate of collars per bollar is bigger than 1, where a collar is a unit of C's currency.

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter14: A Macroeconomic Theory Of The Open Economy

Section: Chapter Questions

Problem 1CQQ

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