Economic Theory Shows That the Current Account Deficit Is Always

question 18

Multiple Choice

Economic theory shows that the current account deficit is always equal to the capital account surplus.This means that

• A)the federal budget must always be in balance.
• B)when a country exports more goods and services than it imports, it also imports assets equal to the difference.
• C)current account deficits should be avoided.
• D)trade deficits tend to be eliminated automatically.

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Definitions:

Voluntary Movements

Movements that are consciously controlled by the brain, involving motor planning and execution.

Acetylcholine

A neurotransmitter in the nervous system involved in muscle activation, memory, and learning.

Muscles

Tissues in the body that have the ability to contract, enabling movement of the body and its parts.

Neurotransmitter

Chemical messengers that transmit signals across synapses from one neuron to another in the brain and nervous system.