When There Is a Current Account Deficit, It Is Likely

question 154

Multiple Choice

When there is a current account deficit, it is likely that

• A) exports exceed imports for the country.
• B) the country is an exporter of capital.
• C) the financial account has a surplus.
• D) the country has a budget surplus.

---

Definitions:

Permanent Change

A lasting transformation that alters the state or condition of something or someone in a significant way.

Learning

The acquisition of knowledge or skills through study, experience, or teaching, which leads to a change in behavior or understanding.

Behaviour

The actions or reactions of individuals, in response to external or internal stimuli, often observed and studied in psychology and sociology.

Classical Conditioning Theory

A conditioning technique where pairing two stimuli repeatedly results in a response, originally provoked by the second stimulus, being evoked by the first stimulus alone.