Team 1
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Team 2
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Teams
Name
Score
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baam
Lose 25 points!
Oops!
×
seesaw
Swap points!
Okay!
×
fairy
Take points!
5
10
15
20
25
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thief
Give points!
5
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25
10
×
A current account deficit implies that there is a financial account...
Surplus
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15
×
What is the formula of the balance of payments?
Current account + financial account + capital account + errors & omissions = 0
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20
×
The Marshall-Lerner Condition occurs when...
PEDX + PEDM > 1
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20
×
The PED of exports and imports are both elastic. Based on this info, can we determine whether the MLC is fulfilled? Why or why not?
We cannot, as we don't know the extent to which it is inelastic.
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boom
Lose 50 points!
Oops!
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seesaw
Swap points!
Okay!
×
rocket
Go to first place!
Okay!
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banana
Go to last place!
Oops!
15
×
Which account is debt forgiveness under?
Capital account
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20
×
What is the value of the trade balance?
-$120 billion
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15
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Explain how exporters are affected by when a persistent current account surplus gets corrected
Lose competitiveness - previously low exchange rate appreciates in value
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15
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Which account is remittances under?
Current account
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20
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Outline TWO reasons why a depreciation of the currency might not immediately correct a current account deficit.
Ongoing contracts, existing habits and tastes, limited access to info
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10
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Identify the impact that a persistent current account deficit would have on exchange rates
Downward pressure on exchange rates.
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heart
Other team wins 20 points!
Oops!
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fairy
Take points!
5
10
15
20
25
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rocket
Go to first place!
Okay!
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baam
Lose 15 points!
Oops!
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banana
Go to last place!
Oops!
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rocket
Go to first place!
Okay!
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gift
Win 15 points!
Okay!
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baam
Lose 25 points!
Oops!
10
×
Economic growth is caused by a persistent current account...
Surplus
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10
×
A persistent current account surplus causes what type of inflation?
Demand-pull inflation.
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