If a Country Runs a Deficit in Its Current Account

question 155

Multiple Choice

If a country runs a deficit in its current account, it is because

• A)exports exceed imports
• B)imports exceed exports
• C)net unilateral transfers are negative
• D)foreign currency received from exports and transfers exceeds the foreign exchange needed to pay for imports and to make unilateral transfers
• E)foreign currency received from exports and transfers is less than the foreign exchange needed to pay for imports and to make unilateral transfers

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Definitions:

Law Of Effect

A principle in psychology stating that behaviors followed by positive outcomes are likely to be repeated, whereas behaviors followed by negative outcomes are less likely to be repeated.

Variable-Interval Schedule

A reinforcement schedule in operant conditioning where a response is rewarded after an unpredictable amount of time has passed.

Counterconditioned

The process of changing a previously undesirable response to a stimulus into a desirable one through conditioning.

Negative Reinforcement

A behavioral concept where the removal of an unfavorable outcome or stimulus strengthens a particular behavior.