What Would You Expect to Find in a Country with a Trade

question 47

Multiple Choice

What would you expect to find in a country with a trade deficit?

• A)High unemployment and lower wages
• B)Higher prices
• C)The value of its currency will increase
• D)A domestic monopoly on consumer goods

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Definitions:

Interest Days

The number of days over which interest is calculated on a loan or investment.

Non-Interest-Bearing Note

A financial instrument that does not accrue interest over time, meaning the borrower pays back only the principal amount borrowed.

Discount Rate

The interest rate charged by central banks on loans to commercial banks or the rate used in discounted cash flow analysis to determine the present value of future cash flows.

Cash Discounts

A reduction in the price of goods or services offered to customers as an incentive for early payment within a specified period.