If a Country Has a Current Account Balance of $100

question 21

Multiple Choice

If a country has a current account balance of $100 billion and the official settlements account balance is zero, then the country's capital account balance must be

• A) equal to $100 billion.
• B) positive but not necessarily equal to $100 billion.
• C) equal to -$100 billion.
• D) negative but not necessarily equal to -$100 billion.
• E) zero.

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Definitions:

Marginal Revenue

The increase in revenue that results from the sale of one additional unit of output.

Price Elasticity

A gauge for assessing how changes in price affect the supply or demand volumes of a product.

Demand Curve

A visual chart that illustrates the connection between a product's price and how much of it consumers want to buy.

Price Cut

A reduction in the selling price of goods or services, often to attract more customers or boost sales.