Suppose the Current Account of a Country Is Initially in Balance

question 99

Multiple Choice

Suppose the current account of a country is initially in balance. A new transaction occurs so that the current account is now in surplus. Official reserve balance is maintained before and after the transaction occurs. From this, we know that

• A) the balance of trade is now in surplus.
• B) the balance of goods and services is now in surplus.
• C) the financial account is now in deficit.
• D) the government must make official reserve transactions.

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Definitions:

Intracranial Hemorrhage

Bleeding within the skull, potentially life-threatening, often caused by trauma or health conditions.

Cheyne-Stokes Respirations

A pattern of irregular breathing characterized by alternating periods of rapid breaths followed by periods of apnea.

Apnea

A temporary cessation of breathing, especially during sleep, which can be indicative of several health issues.

Stimulus for Breathing

Factors or conditions that trigger the respiratory system to initiate the act of breathing, such as increased carbon dioxide levels.