Which of the following is true of U.S. net exports prior to the 1960s?
a. Since most of the oil needs of the U.S. were met through imports, imports exceeded exports prior to the 1960s in the U.S.
b. Prior to the 1960s, exports from the U.S. more or less equalled imports into the U.S.
c. The U.S. was running a trade surplus prior to the 1960s.
d. Prior to the 1960s, the U.S. ran twin deficits- both a current account deficit as well as a budget deficit.
e. Since the U.S. dollar was overvalued prior to the 1960s, the U.S. neither exported nor imported any goods and services.
c
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During most of the time in recent decades, the government sector
A) has not spent more than it collected in taxes. B) has run large deficits. C) has run large surpluses. D) has balanced its budget every year.
Foreign exchange risk is
A) a financial strategy that reduces the change of suffering losses arising from foreign exchange risk. B) an exchange rate arrangement in which a country pegs the value of its currency to the exchange value. C) the possibility that changes in the value of a nation's currency will result in variations in the market value of assets. D) active management of a floating exchange rate on the part of a country's government.