Which of the Following Would Increase the Current Account of Country

question 74

Multiple Choice

Which of the following would increase the current account of Country X? Country Y is Country X's sole trading partner.

• A) Inflation increases in countries X and Y by comparable amounts.
• B) Country X's and Country Y's currencies depreciate by the same amount.
• C) Country X imposes tariffs on imports from Country Y, and Country Y retaliates by imposing an identical tax on X's exports.
• D) The central banks of Country X and Country Y reduce the money supply to increase interest rates.
• E) Country X imposes a quota on imports, and Country Y retaliates by imposing an identical quota on X's exports.

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Definitions:

Family and Medical Leave Act

U.S. legislation granting eligible employees unpaid, job-protected leave for family and medical reasons.

Limitations

Restrictions or constraints that limit the ability to perform an action or achieve a goal.

Discouraged Workers

Individuals who are not actively seeking employment because they believe no jobs are available for them or they are qualified for the jobs that exist.

Discount Period

The timeframe during which a payment can be made at a reduced rate, often used in terms of early payment of invoices for goods or services.