Asked by
Damoni Graham
on Oct 12, 2024Verified
A surplus in a country's balance of trade occurs whenever the country
A) has money outflows that exceed its money inflows.
B) refrains from trade with OPEC countries.
C) exports more goods than it imports.
D) imports more financial capital than it exports.
E) has more currency entering foreign exchange markets than is demanded.
Surplus
A situation where the quantity supplied of a good or service exceeds the quantity demanded at the current price, often leading to a decrease in prices.
Balance of Trade
The difference in value between a country's imports and exports over a certain period.
Money Inflows
Money inflows refer to the incoming funds to a business, organization, or economy from various sources such as investments, sales, and loans.
- Examine the effects of trade imbalances, including deficits and surpluses, on the economic health of a nation.
Verified Answer
AL
Learning Objectives
- Examine the effects of trade imbalances, including deficits and surpluses, on the economic health of a nation.