The Current Account of the United States Includes All of the Following

question 133

Multiple Choice

The current account of the United States includes all of the following except

• A) trade in goods and services
• B) unilateral transfers
• C) income receipts and payments
• D) gold flows between the United States and foreign central banks

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Definitions:

Fiscal Policy

Involves government policies on taxation and spending that aim to influence a country's economic conditions, such as controlling inflation, unemployment, and promoting economic growth.

Transfer Payments

Payments made by the government to individuals through various social benefit programs, without the government receiving any goods or services in return.

Government Purchases

Expenditures by the government for goods and services that directly satisfy public consumption or are invested in public infrastructure.

Taxes

Taxes are compulsory financial charges or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.