Suppose Canada Has a Zero Balance (No Surplus or Deficit)

question 5

Multiple Choice

Suppose Canada has a zero balance (no surplus or deficit) on the both the current account and on the capital account. Then Canadian businesses import new machinery from Italy, financing that increase by borrowing from Japan. On Canada's balance of payments accounts there is now a current account

• A) surplus and a financial account surplus.
• B) surplus and a financial account deficit.
• C) deficit and a financial account surplus.
• D) deficit and a financial account deficit.
• E) surplus and a financial account balance of zero.

Describe the concept and implications of sector rotation.

Analyze the impact of macroeconomic indicators on the economy and individual businesses.

Evaluate the consequences of government policy decisions on the economy.

Determine the influence of operating leverage on firm performance during economic shifts.

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Definitions:

Density-Dependent

Referring to factors whose effects on the size or growth of a population vary with the density of the population itself.

Carrying Capacity

The maximum population size of a species that an environment can sustain indefinitely, given the food, habitat, water, and other necessities available.

Distribution Pattern

The spatial arrangement of organisms within a particular ecoy or habitat, influenced by environmental factors and species interactions.

Environmental Factor

An element of the physical or biological world that can influence the survival, development, or evolution of organisms.