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:

Committed

The state of being dedicated or bound to a cause, activity, or goal.

Compliant

Showing a willingness to follow rules, regulations, or standards; ready to acquiesce to authority or demands.

Resistant

Showing opposition or an unwillingness to accept or comply with changes or new ideas.

Coerced

Being forced to act or comply against one's will through the use of threats, pressure, or intimidation.