A decrease in the country\'s rate of inflation A decrease in the country\'s nati

Question

A decrease in the country's rate of inflation A decrease in the country's national income level An increase in government restrictions in the form of tariffs or quotas An appreciation of the country's currency Which of the following will probably not result in an increase in a country's current account balance (assuming everything else constant)? A decrease in the country's rate of inflation A decrease in the country's national income level An increase in government restrictions in the form of tariffs or quotas An appreciation of the country's currency Which of the following will probably not result in an increase in a country's current account balance (assuming everything else constant)? A decrease in the country's rate of inflation A decrease in the country's national income level An increase in government restrictions in the form of tariffs or quotas An appreciation of the country's currency Which of the following will probably not result in an increase in a country's current account balance (assuming everything else constant)?

Explanation / Answer

A decrease in the country's national income level

Reason - The current account balance is the difference between a country's savings and its investment. Less income implies less savings and less current account balance

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