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:

Industrial Regulation

The government policies and rules designed to control or direct economic activity and market forces within specific industries.

Antitrust Policy

The use of the antitrust laws to promote competition and economic efficiency.

Social Regulation

Laws and regulations aimed at improving health, safety, and well-being in society, often implemented to correct market failures affecting the public interest.

Marginal Benefit

The additional satisfaction or value a consumer gains from consuming one more unit of a good or service.