Which of the Following Is Not True About the U

question 203

Multiple Choice

Which of the following is not true about the U.S.trade balance since 1979?

• A)The balance of trade has been in deficit.
• B)During recessions the balance has usually been flat.
• C)The balance of trade has been in surplus.
• D)When the economy expanded, the demand for imports increased.
• E)When the economy expanded, the trade balance worsened.

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Definitions:

Short-Term Debt Investments

Investments made with the intention of earning a return on surplus cash that can be converted into cash within a short period, usually less than one year.

Securities Market

A financial marketplace where securities such as stocks and bonds are bought and sold, facilitating capital flow in the economy.

Brokerage Fees

Fees charged by a broker for executing transactions or providing specialized services.

Cost Method

An accounting approach where investments are recorded at their purchase cost without considering market value fluctuations.