You Just Read That Forecasters Predict Canada Will Run a Current

question 18

Multiple Choice

You just read that forecasters predict Canada will run a current account deficit in 2004.From this you would infer that Canada will also

• A)run a capital account deficit in 2004.
• B)decrease its official reserve assets.
• C)run a balance of payments surplus.
• D)decrease its holding of net foreign assets.

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Definitions:

Partnership

A form of business organization defined by the Uniform Partnership Act as “an association of two or more persons who carry on as co-owners of a business for profit.”

Strikebreaking

The act of using non-union workers to replace striking employees in order to keep an organization operational during a labor strike.