If the Value of a Nation's Merchandise Imports Exceeds Merchandise

question 82

Multiple Choice

If the value of a nation's merchandise imports exceeds merchandise exports, the nation is running a

• A) balance of payments deficit.
• B) balance of payments surplus.
• C) merchandise trade deficit.
• D) merchandise trade surplus.

---

Definitions:

Appreciation

An increase in the value of one currency relative to another currency.

Nanotechnology

The science and technology of creating and utilizing materials, devices, and systems by manipulating matter at the nanometer scale.

Economic Growth

An increase in the production of goods and services in an economy over a period, often measured as the percent rate increase in real gross domestic product (GDP).

Foreign Exchange Market

A global decentralized or over-the-counter market for the trading of currencies, enabling currency conversion for international trade and investment.