If There Is a Small Surplus in the Combined Current

question 147

Multiple Choice

If there is a small surplus in the combined current account plus capital and financial account for a certain year, then to make the two accounts balance, there will be

• A) an increase in the exchange rate.
• B) a decrease in the exchange rate.
• C) an increase in official reserve holdings.
• D) a decrease in official reserve holdings.

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Definitions:

Social Movements

Collective efforts by groups of people to challenge existing norms or laws and advocate for significant social, political, or environmental changes.

Convergence Theory

A theory in sociology that suggests societies globally are becoming more similar in terms of culture, technological advancements, and economic practices due to increased connectivity.

Contagion Theory

A theory in social psychology that suggests individuals in a crowd can lose their sense of individual self and moral reasoning due to the infectious and uninhibited behaviors of the group.

Social Movement's Life Cycle

The stages that social movements typically go through, including emergence, coalescence, bureaucratization, and decline or establishment.