What does a balance of trade deficit imply?
a. exports of goods and services exceed imports of goods and services
b. imports of goods and services exceed exports of goods and services
c. investment income received from abroad exceeds investment income paid to foreigners
d. investment income paid to foreigners exceeds investment income received from abroad
e. investment by foreigners exceeds domestic investment in other countries
Ans: b. imports of goods and services exceed exports of goods and services
You might also like to view...
Suppose there is a public good that has market supply characterized by the equation X = (P/3) - (32/3). Suppose further that market demand for this good can be characterized by the equation X = 25 - P. Find the equilibrium quantity of the public good that will be supplied.
What will be an ideal response?
At equilibrium, the market will clear, with no surpluses or shortages occuring
Indicate whether the statement is true or false.