Despite the elimination of the federal budget deficit in the late 1990s, the trade deficit increased due to
a. increased household saving.
b. decreased household saving.
c. a depreciation of the dollar.
d. an increase in inflation rates.
b
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If country A has a comparative advantage in the production of good X over country B, then
A. country A also has an absolute advantage in the production of this good. B. the opportunity cost of producing X in country A is higher than in country B. C. the opportunity cost of producing X in country A is lower than in country B. D. the opportunity cost of producing X in country A is higher or lower than in country B.
A nation's account with the International Monetary Fund denominated in special drawing rights is
A. the account at the World Bank. B. portfolio investment. C. the account at the Fed. D. the quota subscription.