If the Current Account Balance Is Negative, Net Interest Is

question 36

Multiple Choice

If the current account balance is negative, net interest is $100 billion and net transfers are -$100 billion, then

• A) imports exceed exports.
• B) the official settlements account must be negative.
• C) real GDP exceeds potential GDP.
• D) the official settlements account must be positive.
• E) exports exceed imports.

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Definitions:

Social Security

A government program that provides monetary assistance to people with an inadequate or no income.

Welfare System

A government program designed to support individuals and families in need, providing financial assistance, healthcare, and social services.

Adequate Employment

Adequate employment refers to employment situations where individuals have jobs that sufficiently utilize their skills, offer fair compensation, and provide stable working conditions.

Poverty

The state of having insufficient financial resources to meet basic living expenses, such as food, shelter, and healthcare.