8. What is the impact of costly investment on current account in the long run? (a)...
8. What is the impact of costly investment on current account in
the long run?
(a) It decreases current account.
(b) It increases current account.
(c) It may decrease or increase current account.
(d) It has no impact on current account.
Homework Answers
Solution :-
The Correct Answer is (B) that is It increases current account
Reason is that In the long run, when benefits of investment start to reap in, business profits and individual incomes would increase, which would lead to increase in consumption and savings. This would lead to an increase in current account
As income is added in the current account.
If there is any doubt please ask in comments
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8. What is the impact of costly investment on current account in
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