The Current Account Surplus

question 71

Multiple Choice

The current account surplus

• A)is a decreasing function of disposable income and an increasing function of the real exchange rate.
• B)is an increasing function of disposable income and an increasing function of the real exchange rate.
• C)is an increasing function of disposable income and a decreasing function of the real exchange rate.
• D)is a decreasing function of disposable income and a decreasing function of the real exchange rate.
• E)is an increasing function of disposable income and a decreasing function of aggregate demand.

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Definitions:

Speed

The rate at which an object covers distance, typically measured in units of distance over time.

Car

A wheeled vehicle used for transporting passengers, which also carries its own engine or motor.

Estimate

An approximate calculation or judgement of the value, number, quantity, or extent of something.

Income

The financial gain received by an individual or a business, typically calculated on a yearly basis, from work, investments, or other sources.