Which One of the Following Items Would Be Classified as a "Debit

question 4

Multiple Choice

Which one of the following items would be classified as a "debit" in country A's balance-of-payments accounts?

• A) the receipt of investment income from abroad by a country A corporation
• B) an increase in the size of a bank account held in a country A bank by a country B Citizen
• C) consulting services provided by a country A citizen to a country B firm
• D) an increase in size of a bank account held in a country B bank by a country A Corporation

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Definitions:

Redistribution Programs

Government policies designed to reduce economic inequality by redistributing income from wealthier segments of society to poorer ones.

Specified Level

A predetermined or defined intensity, quantity, or magnitude of a particular variable.

Technological Change

Innovations and improvements in technology that enhance productivity, efficiency, and the overall quality of goods and services.

Income Inequality

Describes the uneven distribution of income among individuals in a society, where some earn significantly more than others.