When a Country Has a Negative Current Account, That Country

question 414

Multiple Choice

When a country has a negative current account, that country is

• A) borrowing from the rest of the world.
• B) lending to the rest of the world.
• C) running a government budget surplus.
• D) None of the above is correct.

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Definitions:

Productivity

A measure of the efficiency of production, often calculated as the ratio of output to inputs used in the production process.

Productivity

The assessment of the effectiveness with which products and services are created, commonly measured by the amount of output for each input unit.

Output

The total amount of goods and services produced by an economic system, typically measured over a specific time period.

Productive Input

Resources, such as labor, materials, and machinery, used in the production process to create goods or services.