If There Is a Trade Deficit That Creates a Current

question 1

Multiple Choice

If there is a trade deficit that creates a current account deficit

• A)there must be a capital account deficit too.
• B)there must be a capital account surplus.
• C)there must be greater exports than imports.
• D)a currency must ultimately decrease in value.

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Definitions:

Elaboration Likelihood Model

A theory in social psychology that explains different ways of processing stimuli, why they are used, and their outcomes on attitude change, distinguishing between central and peripheral routes.

Infomercial

A television program that combines information and advertisement to promote a product or service in an informative manner.

Endorsing

The act of giving one's public approval or support to someone or something.

Elaboration Likelihood Model

A theory explaining how people might change their attitudes in two ways, either through deep, thoughtful consideration of arguments (central route) or through superficial cues (peripheral route).