The Accompanying Table Contains Hypothetical Data for the U

question 67

Multiple Choice

The accompanying table contains hypothetical data for the U.S. balance of payments in a year. All figures are in billions of dollars. The balance on the current account was a

• A)$51 billion surplus.
• B)$92 billion deficit.
• C)$22 billion surplus.
• D)$82 billion deficit.

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Definitions:

Long-Term Government Bonds

Debt securities issued by a government with a maturity of typically more than ten years, used to fund public expenditures.

Expected Return

The anticipated gain or loss from an investment over a period, considering both the probability of outcomes and the impact of different outcomes.

Portfolio

A collection of financial investments, such as stocks, bonds, commodities, or real estate, held by an individual or institution.

Slope of the Budget Line

The rate at which a consumer can trade off one good for another while maintaining the same level of utility, representing the relative prices of two goods.