Question: In an economy with a high dependency on tourism, which faces a prolonged period of border closures due to global health concerns, what is the most likely short-term impact on the country's current account balance? A. A significant improvement in the current account balance due to a decrease in international travel expenditures. B. A deterioration in the current account balance due to a sharp fall in tourism revenues. C. No significant change in the current account balance, as reduced tourism is offset by increased domestic spending. D. A shift towards a surplus in the trade balance as imports decrease due to reduced demand from tourists. Don't use chatgpt please provide valuable answer

Question: In an economy with a high dependency on tourism, which faces a prolonged period of border closures due to global health concerns, what is the most likely short-term impact on the country's current account balance? A. A significant improvement in the current account balance due to a decrease in international travel expenditures. B. A deterioration in the current account balance due to a sharp fall in tourism revenues. C. No significant change in the current account balance, as reduced tourism is offset by increased domestic spending. D. A shift towards a surplus in the trade balance as imports decrease due to reduced demand from tourists. Don't use chatgpt please provide valuable answer

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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