Asked by
Claire Predtechenskis
on Oct 11, 2024
Verified
A balance-of-trade surplus exists
A) if the dollar value of exports exceeds the dollar value of imports.
B) if the dollar value of imported capital exceeds the dollar value of exports.
C) only if there is relative price inflation domestically.
D) only if full employment exists domestically.
E) only when there is an excess supply of money domestically.
Balance-of-Trade Surplus
A situation where the value of a country's exports exceeds the value of its imports, indicating a net positive flow of domestic currency from foreign markets.
Dollar Value of Exports
The total monetary value of all goods and services a country exports to other countries over a specific time period.
- Recognize the causes of trade deficits and their consequences for economic health.
- Identify the significance of exchange rates and trade balance within the realm of international economics.
Verified Answer
RG
Learning Objectives
- Recognize the causes of trade deficits and their consequences for economic health.
- Identify the significance of exchange rates and trade balance within the realm of international economics.