Which of the following situations would NOT be compatible with the others?
A) a deficit in the current account
B) expenditure being greater than income (production) in a nation
C) a rise in national wealth
D) new borrowing from the rest of the world

Question

Quizplus · Accepted Answer

A deficit in the current account (A), expenditure being greater than income (B) and new borrowing from the rest of the world (D) are all related to a nation's balance of payments, which can lead to a decrease in national wealth. However, a rise in national wealth (C) indicates that the nation's total economic output has increased, which is not compatible with the other three situations.

Which of the Following Situations Would NOT Be Compatible with the Others