When the United States Has a Deficit on Its Current

question 158

Multiple Choice

When the United States has a deficit on its current account,this means that

• A)the dollar value of goods exported must exceed the dollar value of goods imported.
• B)in this year,Americans supplied more dollars than were demanded by foreigners for purchasing American goods and services and for interest and investment income.
• C)in this year,Americans supplied fewer dollars than were demanded by foreigners for purchasing American goods and services and for interest and investment income.
• D)the dollar value of goods imported must exceed the dollar value of goods exporteD.

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Definitions:

Deferred Tax Liability

Deferred Tax Liability is a tax that is assessed or is due for the current period but has not yet been paid, often resulting from timing differences between book and tax deductions.

Economic Depreciation

A decrease in the value of an asset due to changes in market conditions or technology, as opposed to physical wear and tear.

Tax Deductible

Expenses that can be subtracted from gross income to reduce taxable income, effectively lowering the overall tax liability.

Tax Purposes

The reason or objective behind the implementation of taxes or certain tax guidelines, often related to income, business expenses, and investments.