Reducing a Current Account Deficit Requires a Country To

question 12

Multiple Choice

Reducing a current account deficit requires a country to:

• A) Increase private saving relative to investment
• B) Increase private consumption relative to saving
• C) Increase private investment relative to consumption
• D) Increase private investment relative to saving

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Definitions:

Future Cash Flows

are the estimated amounts of money expected to be received or paid out by a business over future periods as a result of its operational activities.

AASB 136

The Australian Accounting Standards Board standard concerning the impairment of assets, requiring entities to ensure that asset carrying values are not more than their recoverable amounts.

Value In Use

The current worth of the anticipated future cash flows from an asset or a unit that generates cash.

Future Cash Flows

Estimated monetary gains or losses that will be realized by an entity in the future.