In the Two-Period SOE Model, If the Current Account Surplus

question 50

Multiple Choice

In the two-period SOE model, if the current account surplus is initially positive and the real interest rate decreases, then

• A)the current account surplus must fall.
• B)the current account deficit must rise.
• C)the current account surplus must rise.
• D)the current account deficit may rise or fall.
• E)the current account deficit must fall.

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Definitions:

Auditor

A professional who examines and evaluates the accuracy and completeness of financial records and statements.

Store Detective

A person employed by a retail business to prevent theft, often working in plain clothes.

Courtesy

Polite behavior that shows respect for other people.

Organizational Citizenship Behavior

Voluntary, extra-role actions performed by employees that contribute to the overall effectiveness and positive atmosphere of an organization.