Over the Last 25 Years, According to the United States

question 470

Multiple Choice

Over the last 25 years, according to the United States balance of payments

• A) the current account and the capital and financial account balances tend to move in the same direction.
• B) the current account and the capital and financial account balances tend to move in opposite directions.
• C) there is no clear relationship between the current account balance and the capital and financial account balance.
• D) the official settlements balance fluctuates greatly from year to year.

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Definitions:

Utility

Utility refers to the total satisfaction received from consuming a good or service.

Diminishing Utility

The principle that as consumption of a good or service increases, the marginal utility derived from each additional unit decreases.

Marginal Utility

The additional satisfaction or benefit obtained from consuming one more unit of a good or service.

Total Utility

The complete satisfaction obtained from consuming a particular quantity of goods or services.