Which of the Following Is a Surplus Item in the U.S

question 152

Multiple Choice

Which of the following is a surplus item in the U.S. current account?

• A) The U.S. government reduces the tariff rates on some imported goods.
• B) IBM pays dividends to British shareholders.
• C) Finn vodka becomes more popular in the United States.
• D) The U.S. government cuts back on military personnel stationed in S. Korea.

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Definitions:

Classical Dichotomy

The theoretical separation of nominal and real variables in classical economics, suggesting that changes in the money supply only affect nominal variables.

Inflation Rate

An upward movement in the overall price level of goods and services in an economy over time.

Aggregate Demand

Aggregate request for products and services in an economy, measured at a particular general price level throughout a defined time interval.

Price Level

The average of current prices across the entire spectrum of goods and services produced in the economy, reflecting inflation or deflation.