Suppose the Current Account of a Country Is in Balance

question 468

Multiple Choice

Suppose the current account of a country is in balance and the official settlements account equals 0. A new transaction occurs so that the current account is now in surplus, but the official settlements account does not change. From this we know that

• A) the capital account is now in deficit.
• B) the balance of trade is now in surplus.
• C) the government must make official reserve transactions.
• D) the government is running a budget deficit.

Understand the complexity and various types of decision-making environments.

Recognize the role of intuition, heuristics, and ethical considerations in decision-making.

Distinguish between classical and behavioral decision theory models.

Demonstrate knowledge of the rational decision model and its steps.

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Definitions:

Sensitive Material

Content or information that requires careful handling due to its potential impact on privacy, security, or confidentiality.

Virtual Team

A group of individuals who work together from different geographic locations, often using technology to communicate and collaborate.

Integrity

The quality of being honest and having strong moral principles, or the state of being whole and undivided.

Centralized

A system or structure where the decision-making authority is concentrated at a single point or in a single person.