UNIT 06 / INTERNATIONAL ECONOMIC ISSUES

Policies to correct imbalances in the current account of the balance of payments6.5 test

100 questions with explanations after each answer.

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QUESTION 01 / 100Easy

Why might a government regard stability of the current account as a macroeconomic policy objective?

Select one answerAA current-account deficit implies a government budget deficit.BA current-account surplus guarantees full employment throughout the economy.CLarge persistent imbalances may create problems and be unsustainable.DStability requires the country to eliminate all international transactions.

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Question 1