A. Income from export
B. Difference between imports and exports
C. Income from imports
D. All of them
Related Mcqs:
- Which approach predicts that is an economy operates a full employment and faces trade deficit currency devaluation will improve the trade balance only if domestic spending is cut thus freeing resources to produce exports ?
A. the absorption approaches
B. the Marshall Lerner approach
C. the monetary approach
D. the elasticities approach - When free trade areas are set up the member countries trade with each other grows faster than their trade with other countries This is due to what economist call ?
A. trade diversion
B. trade channeling
C. trade creation and trade diversion
D. trade creation - To what does the phrase terms of trade refer ?
A. the currency exchange rate
B. the difference between the value of visible exports and visible imports
C. The government’s policies to increase exports
D. the rate at which exports are exchanged for imports - The difference between the balance on current account and the balance on capital account is the ?
A. statistical discrepancy
B. balance of payments
C. balance of trade
D. trade deficit - The difference between a country’s balance of payments and its balance of international indebtedness?
A. is equal to official reserve transactions
B. occurs because of foreign exchange fluctuations
C. reflects statistical discrepancies
D. reflects the difference between flow and stock concepts - Starting from a position where the nation’s money demand equals the money supply and its balance of payments is in equilibrium economic theory suggests that the nation’s balance of payments would move into a surplus position if there occurred in the nation a (an) ?
A. increase in the money demand
B. decrease in the money demand
C. increase in the money demand
D. None of the above - Starting from a position where the nation’s money demand equals the money supply and its balance of payments is in equilibrium its balance of payments would move into a surplus position if there occurred in the nation a (an) ?
A. decrease in the money supply
B. increase in the money supply
C. decrease in the money demand
D. None of the above - The notion that, following a currency depreciation the balance of trade falls for a while before increasing is called an effect ?
A. relative price
B. elasticity
C. J Curve
D. Pass through - when the level of income _________ there will be a tendency for the trade balance to improve as imports?
A. increase, increase
B. falls, increase
C. falls, fall
D. increase, fall - The balance of trade can only worsen if income ____ relative to absorption ?
A. increases
B. decreases
C. does not change
D. None of the above
