ASSIGNMENT

Assignment



Assignment

Question 1.

The budget deficit is the situation in which the state revenues (excluding loan repayments) are less than its expenditure (excluding debt) over a year. The current account balance is the cash flows of a country arising from international trade of goods and services (trade balance), income and current transfers. The current account is a component of the balance of payments. The current account deficit is the situation that occurs in the balance of payments of a country where the expenditure by exchange of goods, services (tourism and travel), income and transfers to abroad are higher than the ...