Other Things Being Equal, an Increase in the Current Account

question 91

Multiple Choice

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

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

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Definitions:

Sales Revenues

The total amount of money generated from sales of goods or services before any expenses are subtracted.

Variable Costs

Costs that vary directly with the level of production or sales volume, such as raw materials and packaging.

Scattergraph Method

A statistical tool used to plot data points on a graph to identify potential trends, often used in cost accounting to analyze variable costs against a level of activity.

Cost Behaviours

Describes how different types of costs change or remain constant with variations in business operations' volume or scale.