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.
Correct Answer:

Verified
Correct Answer:
Verified
Q7: A U.S. purchase of patent rights from
Q15: A balance-of-trade surplus indicates an excess of
Q40: Japan's annual interest rate has been relatively
Q44: Over the last several years, international trade
Q55: According to the "J-curve effect," a weakening
Q66: The balance of payments is a measurement
Q67: The _, an accord among 117 nations,
Q68: The World Bank frequently enters into cofinancing
Q70: The capital account reflects changes in country
Q71: Portfolio investments represent transactions involving long-term financial