Which Statement Best Describes the Current Account Balance in the Short

question 21

Multiple Choice

Which statement best describes the current account balance in the short run?

• A) Monetary expansion lowers the current account balance.
• B) Monetary expansion keeps the current account balance the same.
• C) Fiscal expansion increases the current account balance.
• D) Fiscal expansion keeps the current account balance the same.
• E) Monetary expansion increases the current account balance.

---

Definitions:

Neutral Third Party

An independent person or entity that is not involved in any side of a conflict or negotiation, offering assistance in resolving disputes without bias.

Conciliator

An individual, often a neutral party, who assists in resolving disputes by bringing conflicting parties together to achieve agreement or reconciliation.

Consultant

A professional who provides expert advice in a particular area such as business, education, law, regulatory compliance, human resources, marketing, finance, healthcare, or any of many other specialized fields.

Persuasion

The act or process of influencing someone's beliefs, attitudes, or behaviors through argument, appeal, or reasoning.