A Deficit in the U

question 121

Multiple Choice

A deficit in the U.S.current account is offset by a surplus

• A) in the U.S. trade account.
• B) in the U.S. balance-of-payments.
• C) in the U.S. capital and financial account.
• D) in the U.S. official reserve assets.

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Definitions:

Perfectly Competitive Market

A market structure characterized by many buyers and sellers, free entry and exit, and a homogeneous product.

Market Price

The current price at which a good or service can be bought or sold in a marketplace, determined by supply and demand.

Cartel

A formal agreement among competing firms to control prices or exclude entry of a new competitor in the market.

Market Price

The current price at which an asset or service can be bought or sold in a particular market.