Which of the Following Is TRUE

question 45

Multiple Choice

Which of the following is TRUE?

• A) A country with a current account surplus is earning more from its exports than it spends on imports.
• B) A country could finance a current account deficit by using previously accumulated foreign wealth to pay for its imports.
• C) A country with a current account deficit must be increasing its net foreign debts by the amount of the deficit.
• D) We can describe the current account surplus as the difference between income and absorption.
• E) All of the above are true of current account balances.

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Definitions:

Tertiary Sector

Jobs that provide services (e.g., teaching, nursing) rather than goods.

Nineteenth Century

The period from 1801 to 1900, marked by significant industrial, social, and political changes worldwide.

Primary Sector

Jobs dedicated to exploiting raw materials (e.g., logging, mining).

Alienated

The feeling of being isolated or estranged from a group or society to which one should belong or in which one should be involved.