Suppose Initially Canada Has All Its International Payments Accounts in Balance

question 26

Multiple Choice

Suppose initially Canada has all its international payments accounts in balance (no surplus or deficit) . Then Canadian firms increase the amount they import from Japan, financing that increase by borrowing from Japan. Everything else remaining the same, there will now be a current and financial account

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

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Definitions:

Working Memory

A cognitive system with a limited capacity that is responsible for temporarily holding information available for processing, critical to reasoning and the guidance of decision-making and behavior.

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Neurodevelopmental conditions that affect an individual's ability to perceive or process information efficiently and effectively, impacting learning.

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Disorders, often mental or physical, that are specifically associated with athletes and the demands of their sports.