Which of the Following Is True When a Country's Trade

question 15

Multiple Choice

Which of the following is true when a country's trade position is balanced (i.e.,NX = 0) ?

• A)Demand for domestic goods is equal to the domestic demand for goods.
• B)Demand for domestic goods is greater than the domestic demand for goods.
• C)Demand for domestic goods is less than the domestic demand for goods.
• D)Neither a budget surplus nor deficit exists (i.e., G - T = 0).

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Definitions:

Ratio

A quantitative relationship between two numbers, showing how many times the first number contains the second or is contained within it.

Earnings Per Share

Earnings per share (EPS) is a financial ratio that divides the net earnings available to common shareholders by the average outstanding shares, indicating how much money shareholders would receive for every share owned.

Income Before Interest

Profits calculated after all expenses except interest expenses have been deducted from revenues.

Income Taxes

Income taxes are government levies imposed on individuals and entities' income, varying based on the taxable income amount.