Which Statement Best Describes the Current Account Balance in the Short

question 21

Multiple Choice

Which statement best describes the current account balance in the short run?

• A) Monetary expansion lowers the current account balance.
• B) Monetary expansion keeps the current account balance the same.
• C) Fiscal expansion increases the current account balance.
• D) Fiscal expansion keeps the current account balance the same.
• E) Monetary expansion increases the current account balance.

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Definitions:

Expected Profit

The anticipated financial gain from a business venture or investment, estimated based on forecasts or previous performance.

Price

The amount of money required to purchase a particular good or service.

Sales

The activity or business of selling products or services.

Costs

The costs associated with the creation of goods or services, covering materials, workforce, and indirect expenses.