If the Current Account Is in Surplus and the Capital

question 269

Multiple Choice

If the current account is in surplus and the capital account is zero,then

• A)the financial account must be in deficit.
• B)the balance of trade must be in deficit.
• C)the balance of payments must be in deficit.
• D)there is a capital inflow.
• E)the balance of services must be in deficit.

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Definitions:

Cakes

Baked desserts that are typically sweet and made from ingredients such as flour, sugar, and eggs.

Marginal Cost Curve

A graphical representation showing how the cost to produce one additional unit of a good changes as more of that good is produced.

Average Variable Cost Curve

A graphical representation showing how the average variable cost of production changes as the quantity of output changes.

Marginal Cost

The augmentation in cumulative cost resulting from the manufacture of an additional unit.