A High Home Inflation Rate Relative to Other Countries Would

question 29

Multiple Choice

A high home inflation rate relative to other countries would ____ the home country's current account balance, other things equal. A high growth in the home income level relative to other countries would ____ he home country's current account balance, other things equal.

• A) increase; increase
• B) increase; decrease
• C) decrease; decrease
• D) decrease; increase

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Definitions:

Federal Exemptions

Specific assets or income types that are protected or exempt from seizure under federal law during bankruptcy.

Insolvency

Refers to the financial condition where an entity can not meet its debt obligations as they come due.

Consecutive Years

Years that follow one after another without interruption.

Involuntary Bankruptcy

A legal process initiated by creditors to force a debtor into bankruptcy proceedings, in order to recoup debts owed by liquidating the debtor's assets.