Which One of the Following Statements Is the Most Accurate

question 38

Multiple Choice

Which one of the following statements is the most accurate?

• A) An increase in disposable income improves the current account.
• B) An increase in disposable income does not affect the current account.
• C) An increase in disposable income worsens the current account.
• D) An increase in income worsens the current account.
• E) An increase in income improves the current account.

---

Definitions:

Net Domestic Product

The total value of all goods and services produced within a country in a year, after accounting for depreciation.

Gross National Product

The total value of goods produced and services provided by a country during one year, including the net income from foreign investments.

National Income

The total amount of money earned within a country from the production of goods and services in a given time period.

Corporate Profits Taxes

Taxes levied on the earnings after expenses and deductions of corporations, similar to corporate income tax but emphasizing the taxation on net profits.