A Current Account Deficit Exists When

question 338

Multiple Choice

A current account deficit exists when:

• A) the balance on current account is negative.
• B) spending flowing out of the country is less than spending flowing into the country.
• C) net exports are positive.
• D) an economy buys less from foreigners than it sells to them.

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Definitions:

Identified

Recognized or distinguished as being a particular entity or belonging to a specific category or group.

Excused

Released from a duty or obligation, often because of a specific reason or circumstance that justifies the exemption.

Perfect Tender Rule

A legal principle that requires sellers to deliver goods exactly as specified in a contract without deviation.

Conformity

The act of matching attitudes, beliefs, and behaviors to group norms or standards.