i tend to over think these type of questions
Select the right answer(s)
a) Trade deficits are necessarily equal to capital outflow.
b) Trade deficits may or may not be equal to capital outflow.
c) Trade deficits cannot be equal to capital outflow.
d) Real exchange rate is the price of a foreign currency.
e) Nominal exchange rate is the price of a foreign currency.
f) Nominal exchange rate is the rate of exchange between two currencies.
g) The statements in e and f are true.
h) The statements in d, e and f are false.
i) In the Solow model, an increase in the saving rate has a permanent effect on GDP per
capita growth rate.
j) In the Solow model, an increase in the saving rate has only a temporarily effect on GDP
per capita growth rate.
k) In the Solow model, an increase in the saving rate has no effect on GDP per capita
growth rate.
Select the right answer(s)
a) Trade deficits are necessarily equal to capital outflow.
b) Trade deficits may or may not be equal to capital outflow.
c) Trade deficits cannot be equal to capital outflow.
d) Real exchange rate is the price of a foreign currency.
e) Nominal exchange rate is the price of a foreign currency.
f) Nominal exchange rate is the rate of exchange between two currencies.
g) The statements in e and f are true.
h) The statements in d, e and f are false.
i) In the Solow model, an increase in the saving rate has a permanent effect on GDP per
capita growth rate.
j) In the Solow model, an increase in the saving rate has only a temporarily effect on GDP
per capita growth rate.
k) In the Solow model, an increase in the saving rate has no effect on GDP per capita
growth rate.