27. A capital account deficit implies

a. spending exceeds income

b. income exceeds spending

c. exports exceeds imports

d. none of the above

28. A current account surplus will be reflected in

a. an excess imports over exports

b. an excess spending over income

c. a deficits in the capital account

d. reduced holdings of real and financial assets

29. On the U.S. balance of payment, an item appears in the current account is:

a. foreign assets in the U.S.

b. U.S. assets abroad

c. unilateral transfers

d. none of the above

30. A transaction that appears as a debit on the U.S. balance of payments is:

a. an American import of Japanese motorcycle

b. an American export of a movie made in Boston

c. the sales of American securities to foreigners

d. a decrease in American assets held abroad

Answer questions 31 and 32 on the basis of the following information.

Accountyear 1year 2

balance on goods trade$124$56

balance on services225

balance on goods and services10251

Unilateral transfers, net152

Capital account12349

Balance of payments50

31. In year 1, the balance on current account was

a. $117

b. $0

c. $124

d. $12

32. In year 2, the balance on current account was

a. $56

b. $51

c. $49

d. $0

33. On the U.S. balance of payments, merchandise exports are classified as

part of

a. the unilateral transfer account

b. the U.S. assets abroad

c. the current account

d. the capital account