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Examen
ECON 345 Test 1 and 2 Combined | Full Questions 
and Answers | Spring 2026 Exam Key | Hunter 
College | Verified Solutions
NuevoPart I: Balance of Payments & National Accounting 
1. The United States is a net debtor to the rest of the world, yet it has recently had 
positive net factor payments in its current account. How is this possible? 
Answer: Positive net factor payments despite being a net debtor occur when the 
return on US foreign assets (abroad) exceeds the return paid to foreign investors 
on US domestic assets. 
Rationale: The "return differential" matters. This is often due to the US investing i...
Examen
ECON 345 Chapter 2 With Complete Solutions Latest Update 2024
PopularECON 345 Chapter 2 With Complete Solutions Latest Update 2024
Examen
ECON 345 Test 1 | Full Questions and Answers | 
Spring 2026 Exam Key | Hunter College | Verified 
Solutions
NuevoPart I: Balance of Payments & National Accounting 
1. The United States is a net debtor to the rest of the world, yet it has recently had 
positive net factor payments in its current account. How is this possible? 
 
Answer: Positive net factor payments despite being a net debtor occur when the 
return on US foreign assets (abroad) exceeds the return paid to foreign investors 
on US domestic assets. 
Rationale: The "return differential" matters. This is often due to the US investing...
Examen
ECON 345 Practice Exam: Test 2 Full Questions and 
Answers | Spring 2026 Exam Key | Hunter College 
| Verified Solutions
NuevoPart I: True/False/Uncertain 
 
1. The Bretton Woods system collapsed because the United States engaged in 
overly expansionary monetary policy. 
 
Answer: True 
Rationale: The US expansionary monetary policy (financing Great Society and 
Vietnam War without raising taxes) led to inflation and a loss of confidence in the 
dollar. Foreign central banks accumulated more dollars than the US had gold, 
forcing Nixon to close the "gold window" in 1971 . This is the Triffin Dilemma. 
...
Examen
Econ 345 Money And Banking Final Exam With Complete Solutions Latest Update 2024
Econ 345 Money And Banking Final Exam With Complete Solutions Latest Update 2024
Examen
Econ 345 Money & Banking Midterm 1 With Complete Solutions Latest Update 2024
Econ 345 Money & Banking Midterm 1 With Complete Solutions Latest Update 2024
Examen
ECON 345 Final Review With Complete Solutions Latest Update 2024
ECON 345 Final Review With Complete Solutions Latest Update 2024