The Best Weather in a Decade Has Given Australia a Bumper

question 94

Multiple Choice

The best weather in a decade has given Australia a bumper wheat crop.Australia is a small open economy.Based on this information alone,you would expect that

• A)desired investment would decrease.
• B)desired investment would increase.
• C)the current account would increase.
• D)the current account would decrease.

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Definitions:

Bonus Contracts

Agreements that specify the conditions under which bonuses will be awarded to employees or partners, often tied to performance metrics.

LIFO Conformity Rule

A requirement that if the Last-In, First-Out (LIFO) inventory valuation method is used for tax purposes, it must also be used for financial reporting.

SEC

Securities and Exchange Commission, an independent federal agency responsible for enforcing federal securities laws and regulating the securities industry and stock and options exchanges in the United States.

International Accounting Standards

A set of older accounting standards that were replaced by IFRS, previously developed by the International Accounting Standards Committee (IASC) to guide financial reporting internationally.