Factors not Influencing CAD of Country
Savings Rate
Incorrect AnswerNatural Resources
Incorrect AnswerConsumer spending
Incorrect AnswerCapital inflows
Correct AnswerExplanation:
- Savings Rate: Impacts CAD as higher savings can lead to lower imports and reduced deficits.
- Natural Resources: Their presence or absence can influence trade balance and thereby the CAD through exports.
- Consumer Spending: Drives demand for imports, impacting the CAD.
- Capital Inflows: ?? Does not directly influence CAD, but affects the financial account of the balance of payments rather than the current account itself.