A Country with a Current Account Surplus

question 75

Multiple Choice

A country with a current account surplus:

• A) has imported more than it has exported.
• B) as borrowed heavily from the rest of the world.
• C) has exported more than it has imported.
• D) also has a capital account surplus.

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Definitions:

Demand

The capacity of consumers to purchase a good or service, considering their willingness and financial ability, at diverse prices over an established period.

Economic Inefficiencies

Circumstances where resources are not optimally allocated, leading to waste or losses in potential value within an economy.

Product Variety

The assortment of different goods or services offered by a firm or market to cater to diverse consumer preferences.

Monopolistically Competitive

A marketplace configuration in which a wide variety of firms supply products that are analogous but not identical, thereby granting them a modicum of market influence.