If a Country's Trade Deficit Increases, Then

question 47

Multiple Choice

If a country's trade deficit increases, then:

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

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Definitions:

Perfection

In finance, the act of securing a priority interest in the collateral among creditors concerning the same collateral or property.

Mechanic Lien

A legal claim against a property by a contractor or repairman for unpaid work, securing payment for services rendered.

Perfected Security

A security interest in a collateral that is legally binding and has been properly filed or registered, affording the creditor priority over other claimants.

Fixtures

In real estate, fixtures are items of personal property that are attached or fixed to the land or building in such a way that they become part of the real property.