If a Country Has a Positive Balance of Payments on the Current

question 406

Multiple Choice

If a country has a positive balance of payments on the current account, then it must:

• A) be exporting too much.
• B) be importing too much.
• C) have a surplus on the financial account.
• D) have a deficit on the financial account.

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Definitions:

Taxable Income

The amount of income that is used to calculate an individual or a corporation's income tax due, after all deductions and exemptions.

Federal Unemployment Compensation

Financial assistance provided by the federal government to individuals who have lost their jobs.

Marginal Tax Rate

The rate at which the last dollar of a taxpayer's income is taxed, indicating the tax rate that applies to each additional dollar of taxable income.

Average Tax Rate

The percentage of total taxable income that is paid in taxes, calculated by dividing the total tax paid by the total taxable income.