If a Country Has a Large Deficit in Its Current

question 41

Multiple Choice

If a country has a large deficit in its current account

• A)it has a large surplus in its financial account.
• B)it exports more than it imports.
• C)it is a net creditor to the rest of the world.
• D)None of the above are necessarily true.

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Definitions:

Voltage Change

A variation in the electrical potential difference between two points in a circuit, which can cause current to flow if a path is available.

Capacitor

A device made with two conductive plates separated by an insulator or dielectric.

Polarized Capacitors

Capacitors that are sensitive to polarity.

DC

Direct Current, a type of electrical current where the flow of electric charge is in one direction.