Under the Simplifying Assumption Made in the Text, a Current

question 173

Multiple Choice

Under the simplifying assumption made in the text, a current account deficit exists when

• A) net exports are positive.
• B) financial flows out of a country for goods and services is less than financial flows into the country for its goods and services.
• C) a country has a trade deficit.
• D) an economy buys less from foreigners than it sells to them.

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Definitions:

Average Price

The mean amount of money paid for a good or service, calculated by dividing the total spent by the number of units bought.

Fraction

A numerical expression representing a part of a whole, consisting of a numerator and a denominator.

Percentage Form

A representation of a number as a fraction of 100.

Value

The importance, worth, or usefulness of something, typically measured in monetary terms or significance.