Suppose Initially Canada Has All Its International Payments Accounts in Balance

question 9

Multiple Choice

Suppose initially Canada has all its international payments accounts in balance (no surplus or deficit) . Then Canadian firms increase the amount they export to Japan, and the Japanese finance the increase by borrowing from Canada. In Canada, everything else remaining the same, there will now be a

• A)current and financial account surplus and capital account surplus.
• B)current and financial account surplus and capital account deficit.
• C)current and financial account deficit and capital account surplus.
• D)current and financial account deficit and capital account deficit.
• E)current and financial account deficit and capital account balance.

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Definitions:

Memory Traces

The theoretical means by which memories are stored in the brain, believed to be a physical or biochemical change in neural tissue.

Neural Circuits

Networks of neurons interconnected by synapses, which are responsible for processing and transmitting information in the nervous system.

Long-Term Potentiation

Long-term potentiation (LTP) is a long-lasting enhancement in signal transmission between neurons, believed to be the cellular basis for learning and memory.

Transience

The tendency for memory accessibility and accuracy to decrease over time, a characteristic of the human memory system.