If the United States Has a Current Account Deficit with England

question 58

Multiple Choice

If the United States has a current account deficit with England of $1 million,and the Bank of England sells $1 million worth of pounds in the foreign exchange market,then England ________ $1 million of international reserves and its monetary base ________ by $1 million.

• A)gains;rises
• B)gains;falls
• C)loses;rises
• D)loses;falls

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Definitions:

Afferent Peripheral

Pertaining to peripheral nerves that carry signals toward the central nervous system from the body, involved in sensory processing.

Nerve Fibers

Extensions of neurons that transmit electrochemical signals throughout the nervous system, enabling communication and response to stimuli.

Transduction

The process of converting one form of energy into another, or in biology, the transfer of genetic material from one organism to another.

Triple Cardiac Bypass

A surgical procedure to improve blood flow to the heart by diverting blood around narrowed or blocked arteries using graft vessels.