Quiz for Chapter 12 Ⅰ. Fill the following blanks with the proper word or expression 1. Y-( )=CA 2、National income equals GNP less ( ),plus ( ),less ( ). 3. GNP equals GDP ( ) net receipts of factor income from the rest of the world. 4. The national income identity for an open economy is ( ). 5. When a country 's exports exceed its imports, we say the country has a current account ( ). 6. The current account includes ( ) 7. Any transaction resulting in a payment to foreigners is entered in the balance of payment account as a ( ). 8. In a closed economy, national saving always equals ( ). 9.When official reserves increase, this will be recorded in the ( ), with ( )sign. 10. When debit is bigger than net decrease of the reserve, the difference will go to the ( ). Ⅱ. True or false 1. The balance of payments accounts always balance in practice as they must in theory.( ) 2. Net unilateral transfers are considered part of the current accounts but not a part of national income .( )3. The GNP a country generates over some time period must equal its national income ,the income earned in that period by its factors of production. ( ) 4. When you buy a share of Microsoft stock , you are buying neither a good or a service , so your purchase dose not show up in GNP. ( ) 5. If the government deficit rises and private saving and investment do not change much ,the current account surplus must fall by roughly the same account as the increase in the fiscal deficit. ( ) 6. We include income on foreign investment in the current account because that income really is compensation for the services provided by foreign investments.( ) 7. Remember that foreign borrowing may not ...
