A Current Account Deficit

question 46

Multiple Choice

A current account deficit

• A)arises when imports exceed exports.
• B)arises when the purchase of foreign assets by a nation's citizens exceed the purchase of domestic assets by a nation's citizens.
• C)is necessary for a long run economic growth.
• D)arises when a country's exchange rate falls.

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Definitions:

Depression

A prolonged period of significant decline in economic activity and employment, more severe than a recession, marked by long-term unemployment and financial distress.

Stock Prices

Stock prices represent the current market value of a share of a company's stock, determined by the supply and demand for that stock in the marketplace and reflecting investor perceptions of the company's future prospects.

Unemployment

The condition of being jobless and actively seeking work, often measured as a percentage of the labor force and used as an indicator of economic health.

Sustained Growth

A consistent increase in the size of an economy over a period, typically characterized by steady growth rates.