The System of Accounts for Each Country,based on the Circular

question 52

Multiple Choice

The system of accounts for each country,based on the circular flow,whose purpose is to measure the level of economic activity is called:

• A)the underground economy.
• B)national income accounting.
• C)bookkeeping.
• D)none of the above.

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Definitions:

American Trade Deficit

occurs when the total amount of goods and services the United States imports exceeds the amount it exports, leading to a net outflow of domestic currency to foreign markets.

Foreign Exchange Rate

The price of one currency in terms of another.

Exchange Rate

The value of one currency for the purpose of conversion to another.

Gold Standard

A monetary system in which a country's currency or paper money has a value directly linked to gold, providing stability and confidence in the currency's value.