Which of the Following Would Call for an Inflow of Payments

question 146

Multiple Choice

Which of the following would call for an inflow of payments to the United States?

• A) American imports of German steel
• B) gold flowing out of the United States
• C) American unilateral transfers to less-developed countries
• D) American firms selling insurance to British shipping companies

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Definitions:

Excess Demand

A market condition in which the quantity demanded of a good or service exceeds the quantity supplied at a given price, leading to upward pressure on price.

Quantity Supplied

The total amount of a good or service that producers are willing and able to sell at a given price level, at a specific time.

Excess Demand

Occurs when the quantity demanded of a good or service at the current price exceeds the quantity supplied, often leading to upward pressure on prices.

Market Equilibrium

A state where the supply of goods matches demand, resulting in stable prices.