Which of the following would decrease the size of the deficit in the current account of Australia?
A)an increase in imports
B)a decrease in exports
C)a decrease in the amount of income Australian companies pay to foreigners who own investments in Australia
D)an increase in the amount of money the Australian government sends in foreign aid to other countries

Question

Quizplus · Accepted Answer

If there is a decrease in the amount of income Australian companies pay to foreigners who own investments in Australia, there will be less money flowing out of the country, which would decrease the size of the deficit in the current account. A, B, and D would all have the opposite effect, increasing the deficit in the current account.

Which of the Following Would Decrease the Size of the Deficit