Under Which of the Following Circumstances Would Utopia Be a Debtor

question 95

Multiple Choice

Under which of the following circumstances would Utopia be a debtor nation?  

• A) if consumers in other countries bought goods and services from Utopia 
• B) only if Utopia has a deficit in its current account 
• C) only if Utopia has a deficit in its balance of goods and services 
• D) if Utopia has a deficit in its balance of trade

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Definitions:

Expenditures

The amount of money spent on various goods and services or to cover operating costs by individuals, businesses, or other entities.

Flow of Dollars

Refers to the movement of money through an economy, tracking how it is earned, spent, and invested.

Real Income

Real income refers to income adjusted for the effects of inflation, reflecting the true purchasing power of the money earned by individuals or entities.

Factors of Production

The resources used in the production of goods and services, which typically include land, labor, capital, and entrepreneurship.