If Countries Decide They Will No Longer Buy U

question 98

Multiple Choice

If countries decide they will no longer buy U.S. assets or lend to the United States:

• A) adjustments will be set in motion to equalize comparative advantages.
• B) adjustments will be set in motion so that the United States has more comparative advantages.
• C) the United States can begin to run a trade deficit.
• D) There is no reason foreign countries will not want to buy more U.S. assets than the United States buys of foreign assets.

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Definitions:

Moving Average

A statistical technique used to analyze data points by creating a series of averages of different subsets of the full data set.

Seasonal Variation

Refers to periodic fluctuations in data or variables that are related to seasonal changes.

Deseasonalized Time Series

Time series data which has been adjusted to remove the effects of seasonal variations.

Seasonal Indexes

A set of numerical values used to adjust for seasonal effects in time series data, allowing for more accurate comparisons across different times of the year.