Governments Prefer to Avoid Excessive Current Account Surpluses Because

question 7

Multiple Choice

Governments prefer to avoid excessive current account surpluses because

• A) the returns to domestic savings are more difficult to tax than those on assets abroad.
• B) an addition to the home capital stock may increase domestic unemployment and therefore lead to higher national income.
• C) foreign investment in one firm may have beneficial technological spillover effects on other foreign producers that the investing firm does not capture.
• D) an addition to the home capital stock may reduce domestic unemployment and therefore lead to higher national income.
• E) domestic savings increase with more investment abroad.

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Definitions:

Procurement Plan

A strategic document outlining how the procurement processes will be managed, including timelines, budget, selection criteria for vendors, and methods of procurement.

Shortening Time

The process of reducing the amount of time needed to complete an activity or task.

Archived Documents

Documents that have been filed or stored for historical or record-keeping purposes.

Product Or Service

The output or deliverable of a project, which can either be a tangible item or an intangible service provided to meet specified requirements.