If a Country Has a Trade Surplus Then

question 60

Multiple Choice

If a country has a trade surplus then

• A)S > I and Y > C + I + G.
• B)S > I and Y < C + I + G.
• C)S < I and Y > C + I + G.
• D)S < I and Y < C + I + G.

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Definitions:

Farm Price-Support Programs

Government initiatives designed to stabilize or increase prices of agricultural products by buying excess supply, providing subsidies, or setting minimum prices.

Consumers

People or organizations who buy products and services for their own consumption.

Low-Income Consumers

Individuals or households with earnings that fall below a certain threshold, often qualifying them for specific benefits or considerations.

Domestic Farm Subsidies

Financial supports provided by a government to domestic farmers to supplement their income, manage the supply of agricultural commodities, and influence the cost and supply of such commodities.