Foundations of Economics, Student Value Edition Plus MyLab Economics with eText -- Access Card Package (8th Edition)
8th Edition
ISBN: 9780134641843
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 34, Problem 4MCQ
To determine
To change a net export deficit into a surplus.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
If a country has a trade deficit of $30 billion, which of the following can be true?
Group of answer choices
The country's exports are $150 billion and its imports are $120 billion.
The country's exports are $110 billion and its imports are $140 billion.
The country's exports are $140 billion and its imports are $40 billion.
The country's exports are $120 billion and its imports are $140 billion.
A net exports deficit will become a surplus if _______.
A.
the country appreciates its currency
B.
the government budget deficit is turned into a surplus and the private sector has a surplus
C.
private saving and government saving exceed private investment
D.
the private sector surplus adjusts to equal the government sector deficit
When a country exports more goods and services than it imports, this is called
Multiple Choice
a balance of trade deficit.
a balance of trade surplus.
a positive terms of trade.
a negative terms of trade.
Chapter 34 Solutions
Foundations of Economics, Student Value Edition Plus MyLab Economics with eText -- Access Card Package (8th Edition)
Ch. 34 - Prob. 1SPPACh. 34 - Prob. 2SPPACh. 34 - Prob. 3SPPACh. 34 - Prob. 4SPPACh. 34 - Prob. 5SPPACh. 34 - Prob. 6SPPACh. 34 - Prob. 7SPPACh. 34 - Prob. 8SPPACh. 34 - Prob. 9SPPACh. 34 - Prob. 10SPPA
Ch. 34 - Prob. 1IAPACh. 34 - Prob. 2IAPACh. 34 - Prob. 3IAPACh. 34 - Prob. 4IAPACh. 34 - Prob. 5IAPACh. 34 - Prob. 6IAPACh. 34 - Prob. 7IAPACh. 34 - Prob. 8IAPACh. 34 - Prob. 1MCQCh. 34 - Prob. 2MCQCh. 34 - Prob. 3MCQCh. 34 - Prob. 4MCQCh. 34 - Prob. 5MCQCh. 34 - Prob. 6MCQCh. 34 - Prob. 7MCQCh. 34 - Prob. 8MCQ
Knowledge Booster
Similar questions
- Examine possible causes of the largest ever recorded trade in goods deficitarrow_forwardThe table below shows data on U.S. exports and imports of goods and services for five years. For each of these years, indicate whether the United States was running a trade surplus or deficit, and dollar amount of the surplus or deficit, and calculate the ratio as a percent of the surplus deficit to U.S. exports. Instructions: In the event a deficit, do NOT include a negative sign (-) for either the dollar amount or the ratio (.% of exports). Enter your responses rounded to one decimal place. U.S. Exports (billions of dollars) U.S. Imports (billions of dollars) Year Surplus or deficit Amount of surplus/deficit (billions of dollars) Surplus/ deficit as a percent of exports 1 457.1 642.0 Deficit 2 531.2 667.2 Deficit % 3 592.7 696.6 Deficit 4 745.0 721.5 Surplus % 687.6 720.4 Deficit %arrow_forwardA country has 4,000 in domestic savings and firms spent 4,140 on new plant and equipment. The national budget surplus is 60. What must the country’s trade balance be?arrow_forward
- Question 68 The great country of Naboombu has private savings of $700 billion, investment of $800 bilion, tax revenue of $5s00 billion, and ment expenditures of $350 billion. What is the trade balance, does the country have a trade surplus or deficit, and is the net lender or borrower international (respectively)? the trade balance is $50 billion, the country has a trade surplus, and the country is a net borrower internationally O the trade balance is S-150 billion, the country has a trade deficit, and the country is a net lender internationally the trade balance is $50 billion, the country has a trade surplus, and the country is a net lender internationally x the trade balance is $-50 billion, the country has a trade deficit, and the country is a net borrower internationallyarrow_forwardUnited States currently runs a significant trade deficit with the rest of the world. Research an academic journal article regarding some of our trade balances with specific countries and share what you find. For example, with whom do we run the largest deficits, with whom do we have surpluses, etc.? Do you think it is a problem if we run a trade deficit? Why or why not? In answering, keep in mind what impact a trade deficit has on other parts of our balance of payments.arrow_forwardSuppose a country exports $60 million worth of goods and services, while it imports $50 million worth of goods and services. This country has a trade deficit and negative capital inflow. has a trade deficit and a postive capital inflow. has a trade surplus and negative capital inflow. has a trade surplus and a positive capital inflow.arrow_forward
- How could a greater budget deficit increase the trade deficit? What happens to the multiplier if there is an increase in the marginal propensity to consume? What would likely happen to the level of economic activity if the government took the necessary steps to reduce the deficit significantly in a relatively short period of time? When is the most appropriate time to reduce the deficit?arrow_forward3) Show AD curve for closed and open economy and derive trade balance (NX) curve from there. Explain graphically how an expansionary fiscal policy may not help a low income country eliminate trade deficit. What should be done in such a case? Clearly indicate the changes.arrow_forwardbea Data ▾ Tools ▾ News ▾ Research ▾ February 2023 January 2023 U.S. International Trade in Goods and Services, February 2023 Resources Current Release: April 5, 2023 About - Current Release The U.S. monthly international trade deficit increased in February 2023 according to the U.S. Bureau of Economic Analysis and the U.S. Census Bureau. The deficit increased from $68.7 billion in January (revised) to $70.5 billion in February, as exports decreased more than imports. The goods deficit increased $2.7 billion in February to $93.0 billion. The services surplus increased $0.8 billion in February to $22.4 billion. -$70.5 B -$68.7 B Next release: May 4, 2023 Help ▾ Billion $ 115 105 95 85 75 65 55 0 Feb 2021 Goods and Services Trade Deficit Seasonally adjusted Monthly deficit U.S. Bureau of Economic Analysis U.S. Census Bureau Search Feb 2022 Three-month moving average Feb 2023 U.S. International Trade in Goods and Services April 5, 2023 Carrow_forward
- A country finds itself in the following situation: a government budget surplus of $630; total domestic savings of $990, and total domestic physical capital investment of $900. According to the national saving and investment identity, if investment increases by $830 while the government budget surplus and savings remain the same, what will be the new value of the trade deficit after the investment increase?arrow_forwardAssume the gross domestic product is $6,000 personal disposal income is $5,100, the government deficit is $200, consumption is $3,800 and the trade deficit is $100. What is the size of: Private savings Investment Government spending National savings Taxes Public savingsarrow_forwardThe United States typically has a balance-of-trade deficit in its trade with which two countries? North Korea Japan China Iranarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
