Which of the following is true when a country's trade position is balanced (i.e., NX = 0)?
A) Demand for domestic goods is equal to the domestic demand for goods.
B) Demand for domestic goods is greater than the domestic demand for goods.
C) Demand for domestic goods is less than the domestic demand for goods.
D) Neither a budget surplus nor deficit exists (i.e., G - T = 0).
A
You might also like to view...
According to the income approach, the largest component of national income in 2003 was
a. government purchases b. proprietor's income c. net interest d. personal consumption expenditures e. compensation of employees
For a firm, the relationship between the quantity of inputs and quantity of output is called the
a. profit function. b. production function. c. total-cost function. d. quantity function.
If trade is consistent with the Heckscher-Ohlin (H-O) theory, then growth in a country's scarce factor of production will lead to
A. balanced growth. B. a deterioration in the country's terms of trade. C. a decreased willingness to trade. D. an increased willingness to trade.
If the equilibrium price of natural gas is $4 per thousand cubic feet and a price ceiling is imposed at $3 per thousand cubic feet, the result will be:
A. a surplus of natural gas. B. a shortage of natural gas. C. an accumulation of inventories of unsold gas. D. more natural gas available than what buyers want to buy.