If We Import More Than We Export from the Rest

question 464

Multiple Choice

If we import more than we export from the rest of the world we

• A) must borrow an equal amount from the rest of the world.
• B) can lend an equal amount to the rest of the world.
• C) are running a trade surplus.
• D) are helping to finance investment in the rest of the world.

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Definitions:

Cause-and-Effect

The relationship between events where one or more are the result of the others, indicating a direct line of action and response.

Sensation

The process of receiving stimuli from the environment and the initial encoding into the nervous system.

Nervous System

The complex network of neurons and supporting cells that transmit signals between different parts of the body and the brain.

Amplitude

The maximum extent of a vibration or oscillation, measured from the position of equilibrium.