Our Current Account Balance in 2009 Was a

question 83

Multiple Choice

Our current account balance in 2009 was a

• A)surplus of about $220 billion.
• B)surplus of about $420 billion.
• C)deficit of about $220 billion.
• D)deficit of about $420 billion.

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Definitions:

Unanticipated Inflation

Inflation that occurs when the actual rate is not what was expected, causing uncertainty and potential issues for businesses and consumers.

Nominal Interest Rate

The rate of interest charged on loans or paid on savings before adjusting for inflation, reflecting the face value rate.

Real Interest Rate

The interest rate adjusted for inflation, representing the true cost of borrowing or the true return on savings.

Anticipated Inflation

The rate of inflation that consumers and firms expect in the future, often based on past inflation rates and current economic conditions.