A Considerable Advantage That Richer Countries Have Over Poorer Ones

question 46

Multiple Choice

A considerable advantage that richer countries have over poorer ones is exemplified by the fact that

• A) richer countries do not have to denominate their foreign debts in their own currencies.
• B) richer countries have the ability to denominate their foreign debts in foreign currencies.
• C) when demand falls for a poorer country's goods, this leads to a significant wealth transfer from foreigners to the poorer country, a kind of international insurance payment.
• D) richer countries have the ability to denominate their foreign debts in their own currencies.
• E) richer countries can extract trade advantages by using military power.

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Definitions:

Neuroticism

A personality trait characterized by emotional instability, anxiety, moodiness, and a tendency to experience negative emotions.

Agreeableness

A personality trait characterized by warmth, kindness, empathy, and a willingness to cooperate with others.

Personality Traits

Enduring characteristics that describe an individual's behavior, attitude, and emotional patterns.

Neuroticism

Neuroticism is a personality trait characterized by sadness, moodiness, and emotional instability.