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.

---

Definitions:

Marginal Revenue Product

The additional revenue generated by employing one more unit of a factor, such as labor, keeping other factors constant.

Resource

An asset or input that is utilized in the production of goods and services, such as labor, capital, and raw materials.

Units

Basic quantities or measurements used to express a variable or to quantify the elements in an analysis.

Employed

Refers to individuals who are currently working in a paid job or running a business.