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.

---

Definitions:

State Unemployment Taxes

Taxes imposed by state governments on employers to fund unemployment insurance benefits for laid-off workers.

Hourly Wage Rate

The amount of money paid for each hour of work performed.

Federal Income Tax Withholding

Federal income tax withholding is the process by which an employer deducts a portion of an employee's income to pay directly to the federal government as a prepaid credit towards the employee’s annual tax liability.

Contingent Liabilities

Potential obligations that may arise from past events, depending on the outcome of future events.