In the Monetized Classical Model, If Trade Is Not Balanced

question 6

Essay

In the monetized Classical model, if trade is not balanced, the international terms of trade will deteriorate for the country with the trade deficit. Explain why this is so.

---

Definitions:

Uniqueness

The quality of being the only one of its kind; distinctiveness that sets someone or something apart from others.

Roles

The behaviors, tasks, and responsibilities expected of an individual in a specific social position or status.

Deindividuation

A psychological state where an individual loses self-awareness and a sense of individuality, often leading to uninhibited or deviant behavior.

Engaging Behaviors

Actions that attract attention, interest, or involvement from others due to their appealing, intriguing, or stimulating nature.