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.

---

Definitions:

Purchasing

The process of sourcing and acquiring goods and services needed by an organization or individual.

Valid Gift

A legal principle referring to a voluntarily transfer of property or a right from one individual to another, without any consideration or payment.

Consideration

The value (which can be in the form of goods, services, money, or a promise) exchanged between parties in a contract, making the agreement legally binding.

Delivery

In legal and commercial contexts, delivery refers to the act of transferring possession or control of an item, asset, or document from one party to another.