The Case of New Zealand, Described in the Text, Concludes

question 108

Multiple Choice

The case of New Zealand, described in the text, concludes that a country's current account deficits are NOT sustainable if a country's

• A) prospects for long-term economic growth are above its global deficit growth.
• B) ability to sustain current account deficits is questionable.
• C) unproductive industrial sectors and its prospects for long-run growth.
• D) labor productivity is below that of most other countries.
• E) exchange rate has fallen relative to other currencies.

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Definitions:

Compensatory Damages

Financial compensation awarded to a plaintiff to indemnify for loss, detriment, or injury suffered as a result of another's wrongdoing.

Unilateral Mistake

A misunderstanding where one party of a contract is mistaken about a material fact or term of the agreement.

Typographical Error

A mistake made in the typing process, often resulting in incorrect spelling or arrangement of letters.

Clerical Error

A mistake made in the process of recording or processing information, typically minor and correctable, but can impact legal documents or financial transactions.