If the Current Account Is in Deficit and the Capital

question 60

Multiple Choice

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

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

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Definitions:

Tax Bracket

Where each line of the tax schedule has an increasing percent based on increasing income.

Taxable Income

Income subject to tax, after deductions and exemptions, according to the law.

Joint Taxable Income

The total taxable income jointly reported by a married couple or partners filing a combined tax return.

Tax Owed

The total amount of tax liability that an individual or business is obligated to pay to a taxing authority.