Explain why a stronger dollar could enlarge the U.S. balance-of-trade deficit. Explain why a weaker dollar could affect the U.S. balance-of-trade deficit.

Q: If the U.S. dollar appreciates and prices remain the same at home and abroad, foreign goods become…

A: Answer to the question is as follows :

Q: The exchange rate states the price, in terms of one currency at which another currency can be…

A: Exchange rate of one currency for another is a common term used in foreign trade market.

Q: People sometimes worry that American trade with other countries will lead to large U.S. trade…

A: The answer is - a) have both current account and financial account deficits at the same time.

Q: Which policy measure is most likely to be effective in reducing a balance of trade deficit? Pick…

A: This situation is also referred as negative trade balance.

Q: Define the trade balance for an open economy and explain the relationship between the trade balance…

A: The real exchange rate (RER) among currencies is the product of the nominal change rate (the dollar…

Q: trade surplus (exporting more than importing) and trade deficit (importing more than exporting) on…

A: The ‘balance of trade’ (BOT) is the sum of a country's import and export.   The BOT is positive(+)…

Q: Which of the following transactions represents a deficit in the current account of the U.S. balance…

A: Balance of payments: It refers to the difference between the money which is coming in the economy…

Q: When a country exports more goods and services than it imports, this is called Multiple Choice a…

A: Exports refer to those goods and services which are produced in one country and supplied to another.

Q: If a country imports more than it exports, it has a trade deficit. True or false

A: Balance of payments is the difference between the the value of the trade exports and imports in the…

Q: For each of the following situations, indicate the direction of the shift in the supply curve or the…

A: 1. When the American made cars becomes popular in the overseas market, it means that the American…

Q: The balance of payments of a country on current account is equal to ___________. Select one: a.…

A: Balance of payment is an account that record all the international transactions of a country with…

Q: Which of the following would cause exports to rise?        A) A depreciation of the exchange rate…

A: A weaker domestic currency invigorates products and makes imports more costly; on the other hand,…

Q: In a fixed exchange rate regime, which of the following policies could lead to a greater trade…

A: Devaluation of currency refers to the act in which the government of a country decreases the value…

Q: Capital flight is the sudden large drop in demand for domestic assets. Explain the following: if we…

A: Capital flight is the flow of domestic financial resources to foreign countries. The capital flight…

Q: Countries which export more than they import have a balance of payments    trade surplus…

A: The statement that reflects the transactions between one country and the rest of the world is known…

Q: Explain why a nation with a current account deficit is a net external borrower, while a nation with…

A: The account that represents exports and imports of goods and services of countries is known as the…

Q: If the dollar rises in value against other currencies, this will Multiple Choice lower our trade…

A: Appreciation of currency refers to the increase in the value of one currency as compared to the…

Q: The balance of trade refers to the balance of imports and exports. True or false

A: Balance of payments is the records of all the transactions of the economy with the rest of the…

Q: Describe two measures that can used by the government to correct a deficit on the current account of…

A: Balance of payment: The balance of payments is a database of all foreign trade and financial…

Q: Explain why you agree or disagree with the following statements: A country that grows faster than…

A: In a floating exchange rate system, depreciation of currency occurs when there is a decline in the…

Q: Evaluate how a growing trade deficit influences the US economy

A: The difference between exports and imports of goods and services in an economy is called the trade…

Q: If a government of a country with a zero trade balance increases its budget deficit, then what will…

A: Import/export imbalances can be a decent or a terrible sign for an economy, and exchange excesses…

Q: Q2-9 The shape of the curve that shows the effect of currency depreciation upon a country's current…

A: The depreciation of any country's money will prompt a fall yet to be determined of exchange at first…

Q: What impact will an appreciation of the dollar have on the relative price of foreign goods to…

A: If the dollar appreciates, then the exchange rate increases. The relative price of domestic goods…

Q: Which of the following measures would best rectify a deficit on a country's Balance of Payments…

A: Deficit on a country's balance of payments refers to when the imports of a country is greater than…

Q: Which of the following transactions is included in the current account balance of the BOP statement…

A: Balance of Payment (BOP) is a statement of the record of all economic transactions of a country with…

Q: Which of the following is one of the indicators of a rising balance of payments deficit? Multiple…

A: Answer: A balance of payment deficit arises when a country imports more than its exports. The…

Q: Define each of the following terms: c. Trade deficit; devaluation; revaluation

A: Trade deficit: Trade deficit can be defined as a situation where country's import exceeds its…

Q: 7-) Question: Policies that tend to cause Please select one or more option: a) decrease investment /…

A: 7)Investment is important for trade to facilitate and ecports to increase.If investment…

Q: How a devaluation may reduce the trade deficit of a country? What condition is required to reduce…

A: Devaluation is the fall in the value of a country's currency. As a result of fall in exchange rate,…

Q: What will happen to the US trade deficit if the US is in a recession while our trading partners are…

A: Trade deficit happens when the country’s export fell and import rises, it means the situation where…

Q: If a country is importing more than it is exporting it will have a balance of trade trade surplus…

A: Balance of trade is the difference between the total value of exports and imports.

Q: Suppose that during a recent year for the United States, merchandise imports were $2 trillion,…

A: Merchandise Trade Balance = Merchandise Exports - Merchandise Import If the Merchandise imports are…

Q: In the balance of payments statement, a current account surplus will be matched by a   capital and…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Define the term TRADE DEFICIT

A: According to the given question Deficit in simple word we can say that when the level of the amount…

Q: Suppose we are in Balance of Payment equilibrium with a trade deficit of 300. What happens to the…

A: Selling of securities recorded under the capital account. IT does not affect the trade deficit.

Q: Define the term balance of trade.

A: Trade is the exchange of goods and services in return for money.

Q: In the balance of payments, a current account deficit is balanced by a capital account surplus. True

A: Balance of payments (BOP) is a record of transactions made between residents of a country and the…

Q: To “cure” their balance of payments deficits without altering exchange rates, Southeast Asian…

A: The 1997–98 Asian financial crisis started in Thailand and afterwards immediately reached to…

Q: The capital account on the United States' balance of payments includes ALL BUT WHICH of the…

A: Balance of Payments of any country includes each and every transaction statement of the…

Q: A trade deficit means a net    inflow of payments for goods and services outflow of goods and…

A: In foreign trade,  exports signify the amount of domestic goods and services that foreign firms and…