If US Imports Increase, the Sum of the Balance of Payments

question 263

Multiple Choice

If U.S. imports increase, the sum of the balance of payments accounts (the sum of the current account plus capital account plus official settlements account)

• A) does not change.
• B) becomes negative.
• C) becomes positive.
• D) becomes negative or positive depending on the government budget deficit or surplus.

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Definitions:

Licensing Agreement

A legally binding contract in which a property owner permits another party to use the property under specified conditions, often for intellectual property.

Financial Loss

The loss of money or decrease in financial value in an investment, transaction, or business operation.

Microchips

Small electronic components consisting of integrated circuits used in various devices for processing, storage, and control purposes.

Export and Import Permits Act

Legislation that controls the export and import of specific goods and technologies to and from a country, requiring permits for certain items to ensure national security and compliance with international agreements.