Questions Macro economics: which one suits the best

• If the public finances are balanced (that is, fiscal balance T-G=0), a financial account deficit would imply:

1. A current surplus and not enough savings to finance investment;
2. a current account deficit and savings in excess of investment needs;
3. a current account surplus and enough savings to finance investment;
4. the economy borrows from abroad to finance the current account deficit

• Nominal sales in a country grew 5% in 2020. the inflation rate in the same year was 6%. the following is true:

1. The relative prices are lower;
2. There was a fiscal surplus;
3. The production level decreased;
4. it is a liquidity trap.

• An increase in the amount of money in circulation, together with a depreciation of the nominal exchange rate, would:

1. increase the interest rate and reduce inflation;
2. reduce the interest rate and increase inflation;
3. increase the interest rate and reduce private consumption;
4. increase the current account deficit and leave inflation unchanged.