Which statement is true?

a	In the 19th century we borrowed from foreigners to finance capital expansion and since the 1980s we borrowed to finance consumption.
b	In neither the 19th century nor since the 1980s we borrowed from foreigners to finance both capital expansion and consumption.
c	In the 19th century, we borrowed from foreigners to finance consumption and since the 1980s we borrowed to finance capital expansion.
d	In both the 19th century and the since the 1980s we borrowed from foreigners to finance both capital expansion and consumption.

In 2009, we had a current account ________ and a capital account _______.

a	surplus;surpls
b	deficit;surplus
c	deficit; deficit
d	surplus;deficit

Appreciation of the Canadian dollar will

a	make Canada's exports less expensive and its imports more expensive.
b	make Canada's exports more expensive and its imports less expensive.
c	make Canada's exports and imports both more expensive.
d	intensify an existing disequilibrium in Canada's balance of payments.

The main reason our current account deficit is so large is that

a

we are running huge federal budget deficits.

b

we are investing too much abroad.

c

we are allowing too much foreign investment in the United States.

d. we are running huge merchandise trade deficits.

The decrease in the value of the dollar relative to the Japanese yen

a

increased both the yen price paid and the dollar price received from U.S. goods exported to Japan.

b

increased the yen price paid and decreased the dollar price received from U.S. goods exported to Japan.

c

decreased both the yen price paid and the dollar price received from U.S. goods exported to Japan.

d. decreased the yen price paid and increased the dollar price received from U.S. goods exported to Japan.

Which of the following measures net exports for the year, including transactions involving services, investment income, and transfers?

a	Balance of trade
b	Budget balance
c	Balance on the current account
d	Balance of payments

Floating exchange rates

a	All of the choices are true characteristics.
b	are fixed by speculators in foreign exchange markets.
c	are rarely used in foreign exchange transactions.
d	float according to the laws of supply and demand.

Appreciation of the British pound will

a	make Britain's exports and imports both more expensive.
b	make Britain's exports and imports both less expensive.
c	make Britain's exports more expensive and her imports less expensive.
d	make Britain's exports less expensive and her imports more expensive.

A reduction in the price of the dollar in terms of the euro, Germany's currency, will have the result of

a	decreasing the price of hotel rooms in Germany to U.S. tourists.
b	increasing the supply of products purchased from Germany.
c	increasing the demand for U.S. products exported to Germany.
d	decreasing the price of products purchased from Germany.