The major factor affecting a nation's balance of payments is
A) an increase in its rate of unemployment.
B) its rate of inflation relative to the rate of inflation of its trading partners.
C) a change in the productivity of its labor.
D) its stock market movements.
B
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When the US government engages in deficit spending, that spending is primarily financed by
(a) increasing the required reserve ratio (b) borrowing from the World Bank (c) issuing new bonds (d) appreciating the value of the dollar (e) depreciating the value of the dollar
Banks help to overcome the problem of asymmetric information by: a. lending to a single rich borrower and not diversifying their portfolio. b. acquiring expertise in evaluating the credit histories of borrowers. c. threatening borrowers
d. offering only one type of loan. e. providing information to lenders.