If Current Taxes Increase, Then

question 57

Multiple Choice

If current taxes increase, then

• A)there is no effect on the current account surplus.
• B)government spending must fall.
• C)the current account surplus rises.
• D)the current account surplus falls.
• E)government spending must rise.

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Definitions:

Operating Activities

Transactions and events that affect the net income of a business, reflected in its cash flow from operations and including everyday functions like selling products and paying wages.

Comparative Balance Sheet

A financial statement that presents a company's financial position at two or more points in time, allowing for comparison.

Net Cash

The amount of cash available after accounting for all cash receipts and payments.

Cash Dividend

A sum of money given by a company to its shareholders, typically from the company's profits.