Current Account Deficits May Not Be Undesirable for the Domestic

question 52

Multiple Choice

Current account deficits may not be undesirable for the domestic economy as it

• A)helps domestic consumers to smooth consumption over time.
• B)leads to lower interest rates.
• C)causes the domestic currency to appreciate.
• D)leads to more government spending.
• E)leads to lower taxes.

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Definitions:

Directed Verdict

A ruling by a court in favor of one party without allowing the case to go to jury, usually because the opposing party has not met the burden of proof.

Pretrial Conference

A meeting between the parties involved in a legal case and the judge, aimed at simplifying the issues and planning the course of the trial.

Directed Verdict

A ruling by a court in favor of one party without allowing the jury to consider the case because the opposing party failed to present sufficient evidence to support their claim.

Demurrer

A legal objection that argues a complaint, even if true, is not sufficient to constitute a cause of action and therefore should be dismissed.