Suppose the Current Account Shows Debits of $5

question 6

Multiple Choice

Suppose the current account shows debits of $5.3 billion and credits of $4.7 billion.The current account balance is ________,and the capital and financial account balance is ________.

• A)+$0.6 billion; -$0.6 billion
• B)+$0.6 billion; +$0.6 billion
• C)-$0.6 billion; -$0.6 billion
• D)-$0.6 billion; +$0.6 billion

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Definitions:

Consumption

The employment of goods and services within home environments.

Income

Monetary payment received for work or through investments.

Interest Rate

The fraction of a loan that incurs interest costs for the borrower, usually described as an annual percentage rate.

Utility Function

A mathematical representation of how a consumer's satisfaction or preference for goods and services is dependent on their consumption levels.