A Current Account Deficit Exists When

question 192

Multiple Choice

A current account deficit exists when

• A)net exports are positive.
• B)financial flows out of a country for goods and services is less than financial flows into the country for its goods and services.
• C)a country has a trade deficit..
• D)an economy buys less from foreigners than it sells to them.

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Definitions:

Transmission

The act or process by which something is conveyed or carried from one place or person to another.

Shared Knowledge

Information, ideas, or understanding that is common to a group of people and forms part of their collective consciousness or culture.

Generations

Groups of individuals, typically within a family, who are born and live around the same time, marking distinct stages in societal or familial development.

Collectivism

A cultural value that emphasizes the importance of the group or community over individual achievements or desires.