The World as a Whole Has a Current Account Deficit

question 34

Multiple Choice

The world as a whole has a current account deficit because

• A) some countries export less than they import.
• B) There are statistical discrepancies.
• C) The United States and China have current account deficit.
• D) Income from assets held abroad is misreported.

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Definitions:

Price Ceiling

A maximum legal price that can be charged for a product or service, above which it cannot rise.

Price Ceiling

A price ceiling is a government-imposed limit on the price charged for a product, intended to prevent prices from rising too high.

Butter Purchased

Butter purchased refers to the act of buying butter, a dairy product made from churning cream, typically used as a spread or in cooking.

Black Market

A market in which goods or services are bought and sold illegally, either because it is illegal to sell them at all or because the prices charged are legally prohibited by a price ceiling.