Use the following to answer questions :
Figure: Demand and Supply of Shirts 
-(Figure: Demand and Supply of Shirts) Look at the figure Demand and Supply of Shirts. In the graph, if the line labeled D shows how many shirts per week will be demanded at various prices, then it is clear that as the price of shirts falls:
Definitions:
Financial Account Deficit
A situation where a country's financial outflows to other countries exceed the inflows from them.
Current Account Surplus
A situation where a country's earnings from exports exceeds its spending on imports, leading to net positive income from foreign transactions.
Balance of Trade
The net difference in value between a country's exports and imports over a certain period.
Balance on Capital Account
A national accounting measure that records all transactions for foreign investments and loans going in and out of a country.
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