Which of the following will not contribute to a higher current account deficit?
Increase in price of crude oil
Rise in export of software services
Rise in import of services
Choose the correct answer using the codes given below:
Options:
A . 3 only
B . 2 only
C . 1 and 2
D . 1 and 3
Answer: Option B Answer: (b) The current account deficit is a measurement of a country’s trade in which the value of goods and services it imports exceeds the value of goods and services it exports. An increase in crude oil price and rise in services of import of oil, increase the current account deficit. However, an increase in export software services will reduce the deficit.
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