A Current Account Surplus

question 2

Multiple Choice

A current account surplus

• A)poses a problem if domestic savings are being invested more profitably abroad than they would be at home.
• B)may pose no problem if domestic savings are being invested more profitably abroad than they would be at home.
• C)may pose no problem if domestic savings are being invested less profitably abroad than they would be at home.
• D)there is no relation between current account surplus and between savings and investment.
• E)poses a problem if domestic savings are being invested less profitably abroad than they would be at home.

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Definitions:

Income Increased

A situation where an individual, household, or entity's earnings or revenue rise, impacting their economic capacity and consumption decisions.

Industries

Broad categories that group businesses and economic activities based on similar production processes, services, or goods produced.

Economy

The system of production, distribution, and consumption of goods and services within a particular geographic region.

Excise or Sales Taxes

Taxes imposed on the sale of specific goods and services, often included in the price paid by the consumer.