A Trade Deficit Is Balanced by A

question 61

Multiple Choice

A trade deficit is balanced by a:

• A) trade surplus.
• B) capital account surplus.
• C) capital account deficit.
• D) current account surplus.

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Definitions:

Implementation Lag

The time delay between when a policy or economic strategy is decided upon and when it is actually put into effect.

Effectiveness Lag

The delay between the time a policy measure is implemented and the time the measure has its intended effect on the economy.

Activity Lag

The delay between the time a particular economic policy is enacted and the time when its full effects are observed in the economy.

Passive Policy

An economic policy approach that involves minimal intervention by the government in the economy, allowing market forces to operate without active guidance or stimulus.