When a Country Runs a Current Account Deficit to Finance

question 11

Multiple Choice

When a country runs a current account deficit to finance an increase in domestic investment expenditures, it causes

• A) taxes to rise.
• B) an increase in capital stock and future productive capacity.
• C) consumption smoothing over time.
• D) a government deficit to occur.
• E) the real interest rate to increase.

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Definitions:

Offspring

The children or young born to a person, animal, or plant.

Gender-typed Mates

The preference for choosing partners who conform to traditional gender roles and behaviors.

Gender Inequality

A social condition marked by unequal treatment or perception of individuals based on their gender.

Cultures

Socially transmitted behaviors, arts, beliefs, institutions, and all other products of human work and thought.