If There Is a Current Account Surplus in the U

question 73

Multiple Choice

If there is a current account surplus in the U.S. balance of payments, then

• A) there will necessarily be a surplus in the financial account.
• B) the sum of deficit accounts exceeds the sum of surplus accounts in the current account.
• C) the sum of surplus accounts in the current account exceeds the sum of deficit accounts in the financial account.
• D) the net balance of the balance of payments will equal zero.
• E) the United States is a net debtor to the rest of the world.

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Definitions:

Valued Beliefs

Principles or convictions held to be of important worth by an individual or group.

Desire

An intense desire to possess something or a deep hope for something to occur.

Reality

The state of things as they actually exist, as opposed to an idealistic or notional idea of them.

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The team or group that is generally expected or predicted to win a competition or achieve success due to its superior position or abilities.