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.

---

Definitions:

Chi-squared Distribution

A statistical distribution that describes the distribution of the sum of the squares of a set of variables that follow a normal distribution, commonly used in hypothesis testing.

Positively Skewed

A distribution shape where the tail is longer on the right side, indicating that the mean and median are greater than the mode.

Chi-squared Distribution

A probability distribution that describes the distribution of the sum of the squares of variables that are independently distributed according to a standard normal distribution.

Degrees of Freedom

The number of independent values or quantities that can vary in an analysis without violating any constraints.