If New Zealand were to pursue a policy of having a balanced current account then it is likely that

Select one:

a.New Zealand savings (S) would rise.

b.New Zealand investment (I) would fall.

c.net foreign income to New Zealand (NFI) would rise.

d.Any and all of the above could happen.

From December 2014 to March 2015, the seasonally adjusted nominal value of residential work put in place increased by $60m. Which of the following factors CANNOT be the reason for this increase?

Select one:

a.A number of large sub-divisions have recently become available.

b.March is usually higher than December as the building industry mostly closes down over Christmas.

c.Residential building activity has been steadily increasing for several years now.

d.The cost of building increased.

In New Zealand, national savings is about 4% of national income but households have a negative savings rate. This is explained by

Select one:

a.measurement error.

b.a negative net lending value.

c.household debt.

d.other sectors in the economy having bigger positive savings rates.