A Current Account Deficit

question 25

Multiple Choice

A current account deficit

• A) is never possible because the balance of payments must always balance.
• B) can seldom be larger than 50 percent of a capital account surplus.
• C) can help finance a government deficit indefinitely.
• D) can help finance a government deficit if foreign lenders accumulate government bonds.
• E) does not include investment earnings that are part of the capital account.

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Definitions:

Guided Participation

The process through which an expert, often an adult, helps to structure a child's learning experience through shared activities, gently guiding the child towards skills and understandings.

Cultural Knowledge

Understanding and awareness of the customs, beliefs, and arts of a particular society that guide its view of the world.

Language

A system of communication used by a particular community or country, consisting of written, spoken, or gestural symbols that are used to convey meaning.

Plasticity

The brain's ability to change and adapt as a result of experience, learning, or environment, often highlighted in discussions of learning and rehabilitation.