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

Question

Quizplus · Accepted Answer

An appreciation of the country's currency typically makes its exports more expensive and imports cheaper, which can lead to a decrease in the current account balance, not an increase.

Which of the Following Will Probably Not Result in an Increase