Which of the Following Statements Is True

question 190

Multiple Choice

Which of the following statements is true?

• A) A current account deficit is indicative of an impending recession.
• B) A current account surplus suggests that a country's exchange rate is above equilibrium.
• C) International trade is desirable because of its potential to improve country's standard of living.
• D) A current account deficit is likely to lead to rising unemployment.

---

Definitions:

Black and White

Thinking characterized by absolute terms, seeing everything as one extreme or the other with no middle ground.

Common Emotion

A basic emotional experience shared among humans, such as happiness, sadness, anger, fear, surprise, and disgust.

Sexual Frustration

The condition of having unfulfilled sexual desires or needs, which may lead to psychological stress or tension.

Apprehension

A feeling of anxiety or fear that something bad or unpleasant will happen.