Which of the Following Would Be the Most Volatile Component

question 13

Multiple Choice

Which of the following would be the most volatile component of the current account in Latin America?

• A) imports of goods
• B) imports of services
• C) income on foreign assets
• D) unilateral transfers
• E) exports of goods

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Definitions:

Willingness to Pay

The maximum amount an individual is prepared to expend on a good or service to procure it.

Producer Surplus

The difference between the amount producers are willing to sell a good for and the amount they actually receive.

Tax Revenue

The tax revenue that governments obtain.

Equilibrium Quantity

The amount of products or services available and sought after at the balance price within a marketplace.