Recall the Application About the Factors Which Allow the United

question 68

Multiple Choice

Recall the Application about the factors which allow the United States to continue to run large current account trade deficits with the rest of the world to answer the following question(s) . The 2006 Economic Report of the President addressed the issue of whether the United States can continue to run large current account deficits. The report stated that the current account deficits would eventually be reduced and highlighted a number of factors that suggested the deficits could continue for a long period of time.
-According to this Application, if the United States is running a current account deficit, then the United States

• A) is selling more financial and produced assets than it is buying.
• B) has negative net sales of assets.
• C) has a positive total of net exports + income received from abroad + transfers from abroad.
• D) must also have a balance of payment deficit.

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Definitions:

Kidnappings

The act of unlawfully seizing and carrying away a person by force or Fraud, often to hold them in false imprisonment.

Cognitive Dissonance

The psychological discomfort experienced when holding two or more contradictory beliefs, values, or ideas simultaneously.

Continuing Behavior

Persistent actions or activities that an individual keeps doing over a period of time.

Cognitive Dissonance

A psychological phenomenon where an individual experiences discomfort due to conflicting beliefs, attitudes, or behaviors.