An economy with a trade deficit must also have:
A. positive net capital outflows.
B. a budget surplus.
C. positive net capital inflows.
D. a trade deficit.
Answer: C
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Which of the following both shift aggregate-demand curve to the left?
a) net exports rise for some reason other than a price change and taxes increase. b) net exports rise for some reason other than a price change and government purchases rise. c) net exports fall for some reason other than a price change and government purchases fall. d) net exports fall for some reason other than a price change and taxes fall.
Proponents of a balanced budget amendment to the Constitution argue that it will finally exert discipline on the federal government and so prevent large peacetime deficits. What do the critics argue?
What will be an ideal response?