Monetary Expansion Causes the Current Account Balance to Increase in the Short

question 44

Essay

Monetary expansion causes the current account balance to increase in the short run. Discuss. Is the same the case for fiscal expansion?

---

Definitions:

Market Segmentation

The practice of dividing a target market into distinct groups of consumers with similar needs or characteristics for more effective marketing.

Geographic Segmentation

The process of dividing a market into segments based on the geographic locations of consumers, such as countries, states, or cities.

Demographic Segmentation

The division of a market into segments based on variables such as age, gender, income, occupation, and education.

Market Segmentation

The process of dividing a market of potential customers into groups, or segments, based on different characteristics like demographics or buying behavior.