Q. A country that is a net international debtor initially experiences:
✅ Correct Answer: (A)
An augmented savings pool available to finance domestic spending
International Economics MCQs and Notes
Q. What would be the effects of an export subsidy on oil imposed by Russia?
✅ Correct Answer: (A)
Relative world supply of oil rises and relative world demand falls.
Q. The value to American residents of income earned from overseas investments shows up in which account in the U.S. balance of payments?
✅ Correct Answer: (A)
Current account
Q. The U.S. has a balance of trade deficit when its:
✅ Correct Answer: (B)
Merchandise imports exceed its merchandise exports
Q. The current account of the U.S. balance of payments does not include:
✅ Correct Answer: (C)
The sale of securities to foreigners
Q. If the U.S. faces a balance-of-payments deficit on the current account, it must run a surplus on:
✅ Correct Answer: (C)
Either the official settlements account or the capital account
Q. U.S. military aid granted to foreign countries is entered in the:
✅ Correct Answer: (C)
Current account
Q. The U.S. balance of trade is determined by:
✅ Correct Answer: (D)
All of the above
Q. If the United States government sells military hardware to Saudi Arabia, the transaction would be recorded on the U.S. balance of payments as a:
✅ Correct Answer: (B)
Current account credit