Which of the Following Would Cause the Current Account to Decrease

question 8

Multiple Choice

Which of the following would cause the current account to decrease?

• A) an increase in the nominal exchange rate, E
• B) an appreciation of the home currency
• C) an increase in disposable income
• D) an increase in foreign prices, P*
• E) a decrease in domestic prices, P

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Definitions:

A Register

An A register, often referred to in the context of assembly language and computer architecture, typically stands for an accumulator register, used in arithmetic and logic operations.

Storage Class

A classification in programming that determines the lifetime and scope of variables or functions.

Local Variables

Variables that are declared inside a function or block and can only be accessed within that function or block.