Indicate whether the following statements are true, false, or uncertain and explain why. 1. An economy that starts with a positive net international investment position will run a trade balance deficit at some point. 2. A country has been having trade balance deficits for 45 years. Four decades ago, the country was a net creditor, but after so many trade deficits it became a debtor. Clearly, this economy will have to run trade surpluses at some point. 3. A two-period economy runs trade surpluses in both periods. It follows that the current account in period 1 can have either sign (depending on the magnitude of TB1), but the current account in period 2 must be positive. 4. A country starts 2017 as a net creditor. The interest rate on its net asset position is 10 percent. That year, it runs a current account deficit. It follows that the trade balance in 2017 was also negative. 5. The fact that over the past quarter century the United States has run larger and larger current account deficits is proof that American household savings have been shrinking.

How would you cite different books by the same author on the works cited page? a. moore, jack h. folk songs and ballads. salem: poetry press, 1999. print. moore, jack h. ballads in poetry – a critical review. dallas: garden books, 1962. print. b. moore, jack h. folk songs and ballads. salem: poetry press, 1999. print. –––. ballads in poetry – a critical review. dallas: garden books, 1962. print. c. moore, jack h. ballads in poetry – a critical review. dallas: garden books, 1962. print. moore, jack h. folk songs and ballads. salem: poetry press, 1999. print. d. moore, jack h. ballads in poetry – a critical review. dallas: garden books, 1962. print. –––. folk songs and ballads. salem: poetry press, 1999. print.

Suppose that hubert, an economist from an am talk radio program, and kate, an economist from a nonprofit organization on the west coast, are arguing over government bailouts. the following dialogue shows an excerpt from their debate: kate: to recent financial crises, the concept of bailouts is a hot topic for debate among everyone these days. hubert: indeed, it’s gotten crazy! a government bailout of severely distressed financial firms is unnecessary because free markets will properly price assets. kate: i don’t know about that. without a bailout of severely distressed financial firms, the economy will experience a deep recession. the disagreement between these economists is most likely due todifferences in scientific judgments . despite their differences, with which proposition are two economists chosen at random most likely to agree? business managers can raise profit more easily by reducing costs than by raising revenue. central banks should focus more on maintaining low unemployment than on maintaining low inflation. employers should not be restricted from outsourcing work to foreign nations

Select the word from the list that best fits the definition sometimes