Which of the Following Could Result from a Balance-Of-Trade Deficit

question 23

Multiple Choice

Which of the following could result from a balance-of-trade deficit?

• A)The value of the dollar increases,so Americans can buy more goods from other countries for the same amount of money.
• B)The value of the dollar declines,so Americans have to pay more for goods from other nations.
• C)The value of the dollar increases,making American products cheaper abroad,thereby increasing our exports.
• D)The value of the dollar declines,which makes American products more expensive abroad,thereby decreasing our exports.

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Definitions:

Cash Outflow

Money or funds that leave a company, typically through expenses, purchases, or investments.

Financing Activities

Transactions related to acquiring or repaying capital, such as issuing stocks, bonds, or taking out loans.

Cash Outflow

Money going out of a business in the form of payments, including expenses, investments, and other financial obligations.

Common Stock

Shares representing ownership in a corporation, giving holders voting rights and a share in the company's profits through dividends or stock price appreciation.