Which of the Following Would Increase the Current Account Balance

question 261

Multiple Choice

Which of the following would increase the current account balance of the United States?

• A)an increase in imports
• B)an increase in the amount of money the U.S.government sends in foreign aid to other countries
• C)an increase in the balance of trade
• D)an increase in the amount of income U.S.companies pay out to foreigners who own investments in the United States.

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Definitions:

Illegally Importing

The act of bringing goods or substances into a country in violation of its laws or regulations, often to avoid taxes or because the items are prohibited.

Factory System

A method of manufacturing using machinery and division of labor, characteristic of the Industrial Revolution, which replaced the traditional artisan workshops.

Textiles

Materials that are woven or knitted, typically used for making clothes and other objects.

Ironworks

A place where iron is smelted, forged, or processed into finished products.