Suppose the Balance on the Current Account Is +$100 Billion

question 249

Multiple Choice

Suppose the balance on the current account is +$100 billion and the balance on the capital account is −$1 billion. The balance on the financial account is

• A)+$101 billion.
• B)−$100 billion.
• C)−$99 billion.
• D)−$101 billion.

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Definitions:

Over-Differentiation

refers to the creation of product variations that exceed customer needs or desires, potentially leading to confusion and reduced sales.

Monopolistically Competitive Industries

Industries in which many firms compete by selling products that are similar but not identical, allowing for product differentiation.

Lack of Variety

A situation in a market where there are few different options or types of products available to consumers, potentially leading to decreased consumer satisfaction.

Close Substitute

A product or service that can easily replace another in consumption or use, due to similarities in characteristics or functionalities.