If the Current Account Is in Deficit, We Know That

question 26

True/False

If the current account is in deficit, we know that the capital account is in deficit.

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Definitions:

Perceptual Defence

The tendency for the perceptual system to defend the perceiver against unpleasant emotions.

Framing

Aspects of the presentation of information about a problem that are assumed by decision makers.

Confirmation Bias

The tendency to seek out information that conforms to one’s own definition of or solution to a problem.

Economic Person

A concept in economics and sociology that describes an individual who acts in a rational manner, making decisions based on maximizing personal financial gain.