If US Exports Are $2

question 8

Multiple Choice

If U.S. exports are $2.2 billion and our imports are $2.7 billion

• A) the United States is lending to the rest of the world.
• B) U.S. national saving is too high.
• C) the United States is borrowing from the rest of the world.
• D) U.S. investment must decrease.

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Definitions:

Quantity Demanded

The amount of a good that buyers are willing and able to purchase at a specific price.

Quantity Demanded

The overall volume of a commodity or service that consumers are ready and able to buy at a certain price within a market.

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a given price over a specific period of time.

Equilibrium Price

The Equilibrium Price is the market price at which the quantity of goods supplied is equal to the quantity of goods demanded.