There Is No Reason to Worry About a Balance of Trade

question 140

Multiple Choice

There is no reason to worry about a balance of trade deficit if it is the result of an inflow of capital

• A)that is being channeled into productive investments.
• B)that will make it less costly to increase government spending on programs that will help incumbent legislators get re-elected.
• C)that is used to finance unemployment compensation benefits for a longer time period.
• D)that is used to finance a large budget deficit.

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Definitions:

American West

A region of the United States characterized by its frontier history, encompassing the period of westward expansion.

Natural Resources

Physical materials originating from the earth that are valuable and necessary for humans, including water, minerals, and forests.

Pacific Trade

Trade routes and economic exchanges across the Pacific Ocean, which play a significant role in global commerce, linking Asia with the Americas.

Comstock Lode

A significant discovery of silver ore made in Nevada in 1859, which sparked a silver rush and contributed to the development of the western United States.