While According to the Model the Current Account Balance Will

question 35

Multiple Choice

While according to the model the current account balance will be countercyclical, the balance can also decline due to:

• A)a temporary negative shock like a harvest failure.
• B)a less developed country having poor institutions for growth.
• C)a permanent decrease in government purchases.
• D)all of the above.

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Definitions:

Multiple Regression Model

A predictive method in statistics that uses a range of explanatory variables to estimate the result of a dependent variable.

Independent Variables

Variables in an experiment or statistical model that are manipulated or categorized to determine their effect on dependent variables without being affected by any other variable in the model.

Homoscedasticity

A term in statistics describing a situation where all random variables across a dataset have the same finite variance.

Normality Of Errors

An assumption in many statistical models that the errors in the predictions are normally distributed.