If the Current Account Balance Is -$100 Billion, Net Interest

question 14

Multiple Choice

If the current account balance is -$100 billion, net interest = $0, net transfers = $0, then

• A) exports are greater than imports.
• B) imports are greater than exports.
• C) the capital account balance must be +$100 billion.
• D) there was an increase in net foreign assets.
• E) the country is loaning abroad.

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Definitions:

Generalization

The process by which the brain applies learned information from specific instances to similar situations or stimuli.

Punished Behaviors

Behaviors that have been discouraged or corrected through negative consequences or punishments.

Hazardous

Something that poses a risk or danger, potentially causing harm or adverse effects.

Punishment

A process in which a behavior is followed by a consequence that decreases the likelihood of that behavior's recurrence.