The balance of payments has become a central issue for the United States because
A) when the balance of payments is not balanced, society is unbalanced.
B) the U.S. economy cannot grow when the balance of payments is in deficit.
C) the U.S. has run huge trade deficits in every year since 1982.
D) the U.S. never experienced a surplus in its balance of payments.
E) the U.S. once ran a large trade surplus of about $40 billion.
C
You might also like to view...
Refer to Figure 9-1. Suppose the government allows imports of leather footwear into the United States. The market price falls to $18. What is the value of consumer surplus?
A) $0 B) $270 C) $305 D) $320
A decrease in price of a certain good most likely will lead to
a. an increase in quantity demanded and an increase in demand. b. an increase in quantity demanded but no change in demand. c. an increase in demand but no change in quantity demanded. d. no change in demand and no change in quantity demanded.
Which statement is true?
A. The Fed failed to perform its lender of last resort job after the emergency created by the terrorist attacks on 9/11. B. Thanks to the Check Clearing for the 21st Century Act, the use of checks as a medium of exchange should disappear within a few years. C. The Chinese government and central bank has a significant influence over long-term interest rates in the U.S. D. The Fed changes the federal funds rate in exactly the same manner in which it changes the discount rate.
Suppose that an expected increase in ethanol demand increases the intercept of the demand curve in the previous question(question 57)by $1.00. If corn production stays at 12 billion bushels, the price of corn will be
A. $3.00 B. $4.00 C. $5.00 D. $6.00