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

question 447

Multiple Choice

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

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

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Definitions:

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Marginal Analysis

An economic approach that involves comparing the additional benefits of an activity to its additional costs.

Marginal Analysis

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