Which of the following would likely have the least direct influence on a country's current account?
A) inflation
B) national income
C) exchange rates
D) tariffs
E) a tax on income earned from foreign stocks

Question

Which of the following would likely have the least direct influence on a country's current account?
A) ​inflation
B) ​national income
C) ​exchange rates
D) ​tariffs
E) ​a tax on income earned from foreign stocks

Quizplus · Accepted Answer

A tax on income earned from foreign stocks would likely have the least direct influence on a country's current account because it primarily affects individual investors rather than the broader components of the current account such as trade balance, net income from abroad, and net transfer payments.

Which of the Following Would Likely Have the Least Direct