Which of the following is TRUE about how trade deficits and government budget deficits are related?
A) The government budget deficit leads to higher interest rates that will lead to a trade deficit.
B) The government budget deficit leads to lower interest rates that will lead to a lower trade deficit.
C) The trade deficit leads to a reduction in investment that leads to a government budget deficit.
D) The trade deficit leads to a decline in imports relative to exports that leads to a government budget deficit.
A
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The colonies as a whole had a significant commodity import deficit in their trade with England. The least important source of foreign exchange earnings to offset this trade deficit was:
a. insurance charges and merchant commissions. b. the sale of ships. c. the sale of colonial shipping services. d. payment for slaves.
A firm in which market has the most market power?
A) perfect competition B) monopolistic competition C) oligopoly D) monopoly
A nation's votes at the IMF are proportional to its population
Indicate whether the statement is true or false
In the U.S. balance of payments, foreign purchases of assets in the United States are a:
A. foreign currency outflow. B. foreign currency inflow. C. current account item. D. debit, or outpayment.