The Sum of the Current Account, Capital Account, and Official

question 330

Multiple Choice

The sum of the current account, capital account, and official settlements account is

• A) a negative number if the country has a trade deficit.
• B) always equal to zero.
• C) a positive number if the country has a trade surplus.
• D) positive or negative depending on whether the domestic exchange rate is appreciating or depreciating.

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Definitions:

Tax Credit

A tax benefit that directly reduces the amount of tax owed dollar for dollar.

Child and Dependent Care Expenses

Expenses related to the care of children or other dependents that can be deducted from taxable income.

AGI

This represents the total income a person has, including wages, salaries, and other sources, minus adjustments, used as a basis for calculating tax owed.

Qualifying Children

Qualifying Children are the dependents of a taxpayer who meet specific IRS criteria for the taxpayer to be eligible for certain tax credits and deductions.