Suppose a Country's Net Exports Equal Zero

question 27

Multiple Choice

Suppose a country's net exports equal zero.Which of the following will happen if the volume of exports increases without an increase in the volume of imports?

• A) The country will experience a trade surplus.
• B) The country will experience a trade deficit.
• C) The country will experience a budget deficit.
• D) The country will experience a budget surplus.

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Definitions:

Scheffé Test

A statistical procedure for comparing more than two means while controlling the overall Type I error rate.

Analytical Comparisons

The process of examining similarities and differences between two or more items or data sets, often to evaluate or assess characteristics.

Null Hypothesis

Restated, it is the hypothesis in statistical testing that assumes no significant difference or relationship exists between specified populations, parameters, or data sets.

Statistically Insignificant

A term indicating that the observed difference or relationship in the data could have occurred by chance and does not signify a real effect.