If a Country's Trade Deficit Declines, but It Does Not

question 30

Multiple Choice

If a country's trade deficit declines, but it does not go into surplus, then:

• A)its consumption must be rising relative to its production.
• B)it must be selling fewer assets to foreigners.
• C)it must be buying more assets from foreigners.
• D)it must be producing more than it is consuming.

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Definitions:

Defensive Coping

A psychological strategy individuals utilize to reduce stress and anxiety by minimizing, avoiding, or disengaging from perceived threats or problems.

Approach/Approach Conflict

A decision-making dilemma involving choosing between two desirable outcomes.

Well-Adjusted People

Individuals who are capable of coping effectively with the demands of life, maintaining satisfactory relationships, and participating in society in a constructive way.

Maslow

A reference to Abraham Maslow, an American psychologist who is best known for creating Maslow's hierarchy of needs, a theory of psychological health predicated on fulfilling innate human needs in priority, culminating in self-actualization.