If you observed a country with a rapidly growing trade surplus over a period of a year or so,would you be more likely to believe that the country's economy was in a period of recession or of rapid growth? Explain.

Q: Determine whether a country will become a net-importer or netexporter of a good when it moves from…

A: A country's export behavior or import behavior will be determined by its productivity and other…

Q: Why does the decline in value of a certain currency cause imports to be expensive and exports…

A: Demand-pull inflation/demand-side inflation arises when the aggregate demand (AD) rises faster than…

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: 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: What difference might it make to the Australian economy if the trading relationship between China…

A: In today's well-integrated and connected economies across the globe, both the volume and direction…

Q: Do you think that the balance of economic power in the world has started to shift from west to east?

A: Economic power means having impact to a great extent since the country is able to produce, sell or…

Q: Is it possible for countries to achieve internal and external balance in their economies

A: The economies can experience the internal and external balance if they work according to the…

Q: Occasionally, a government official will argue that a country should strive for both a trade surplus…

A: Trade surplus: It shows the positive balance of trade in which the exports are more than the import…

Q: fixes the price of foreign exchange below equilibrium?

A: Foreign exchange: It is the change of one nation's cash into another. In a free economy, a nation's…

Q: A trade deficit occurs when a nation imports more than it exports. True O False

A: International economics is that branch of economics which studies various international aspects that…

Q: Occasionally, a government official will argue that a country should strive for both a trade surplus…

A: The government officials targets to improve the economic situation by increasing trade surplus and…

Q: How will currency appreciation make imports cheaper and exports more expensive, causing the trade…

A: Increasing the value of country’s currency against other country’s currency is termed as…

Q: Would it be accurate to think of a fixed exchange rate as a simultaneous price ceiling and price…

A: No, it would not be accurate to think of a fixed exchange rate as a simultaneous price ceiling and…

Q: Japan generally runs a significant trade surplus.  Do you think this is most related to high foreign…

A: Answer: Correct option: High Japanese saving rate relative to Japanese investment.

Q: It is impossible that a country runs a negative trade balance over decades.  True  False

A: Balance of trade is a concept through which a country can always keep track of all its imports and…

Q: What is it called when country import prices gain relative to that of its export prices?

A: Terms of trade (TOT) address the proportion between a nation's fare costs and its import costs. At…

Q: Why do economists often consider a nation's balance of trade an important indicator of national well…

A: The movement of products, services, capital, and technology between nations is referred to as…

Q: A country whose National Saving is greater than its Investment will experience a ) Trade deficit (IM…

A: Trade surplus occurs when exports (X) exceed the imports (IM). Trade deficit occurs when imports…

Q: Which among the following will create the Supply of foreign exchange in Oman? By importing more…

A: Option (2).

Q: Should imports to the United States be curtailed by, say 20 percent to eliminate our trade deficit?…

A: The balance of trade refers to exporting and importing and, hence, evaluating the overall economic…

Q: Policies that .... tend to cause ...... a) decrease investment / a trade surplus b) increase…

A: The trade balance refers to the difference between the value of total exports and total imports.  If…

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: Solve the attachment

A: Devaluation is a deliberate reduction in the exchange rate of a country's currency, reducing the…

Q: What are the likely reasons of large trade deficit in Pakistan?  How would you compare the trade of…

A: 1 A trade deficit is an amount by which the cost of the country's imports exceeds its exports. It is…

Q: Summarize the Venezuela economy and oil dependency as an example of Capital Flight. Mention another…

A: Venezuela economy was one of the rich nation and that was because its revenue was dependent on 90%…

Q: If China has a trade surplus with the United States, it is a good thing for the U.S economy? True or…

A: Trade surplus means that a country's export is greater than it's import.

Q: could lead to an imbalance of

A: The lopsidedness of import and product of a nation influences the equilibrium of exchange of that…

Q: If a country consistently runs net export surpluses, then what will happen to its exchange rate?

A: A trade surplus occurs when the result of the above calculation is positive. A trade surplus…

Q: represents trade costs. A higher index represents higher trade costs and less globalization. Based…

A: National borders do not mark the beginning or end of trade. Many enterprises and people encounter…

Q: Why does a recession cause a trade deficit to increase?

A: A recession is a situation that curbs the economy and follows a downturn to the economic growth and…

Q: Explain briefly whether each of the following would be more likely to lead to a higher level of…

A: Meaning of Trade: The term trade refers to the situation under which the products and goods are…

Q: “When a nation is running a trade surplus, capital is flowing out of the country.” Do you agree with…

A: Trade is in surplus when the export of a country is more than it imports. The trade balance is…