Other Things Being Equal, an Increase in the Current Account

question 114

Multiple Choice

Other things being equal, an increase in the current account deficit could result from

• A)an increase in private saving.
• B)a fall in domestic investment.
• C)a rise in the budget surplus.
• D)a fall in the government's budget deficit.
• E)a rise in the government's budget deficit.

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Definitions:

Full-Accrual Totals

Accounting figures that include all revenues earned and expenses incurred, regardless of cash transactions.

Consolidation Worksheet

A tool used in preparing consolidated financial statements for a group of companies, allowing for the elimination of intercompany transactions and balances.

Income

Earnings generated from business activities over a period, often categorized as net, gross, operating, or non-operating income.

Dividends Paid

Payments made by a corporation to its shareholder members from its earnings or profits.