China Is Currently Experiencing a Surplus in Its Current Account

question 64

Multiple Choice

China is currently experiencing a surplus in its current account and its capital/financial accounts. Which of the following is NOT a contributing factor for this unusual situation?

• A) The exceptional growth in the Chinese economy contributes to the current account surplus.
• B) The positive prospects for China's continued growth contribute to the capital/financial account surplus.
• C) China's inevitable acquisition of Taiwan is driving the market for Chinese investment.
• D) All of the above are contributing factors for China's twin surpluses.

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Definitions:

Unionization Rates

The percentage of workers in a particular sector, company, or economy who are members of a labor union.

Income Inequality

The disparity in the distribution of income and wealth across individuals in a society, often leading to societal and economic tensions.

Mainstream Economics Perspective

The commonly accepted views and theories within the economics field that influence policy-making and academic research.

Labor Market

The supply and demand dynamics for labor, where employers seek to hire workers, and workers seek employment.