Triffin Paradox Refers To

question 47

Multiple Choice

Triffin Paradox refers to:

• A)the situation where the imposition of a tariff on imports may reduce the relative internal price of that good.
• B)the situation where technological progress that increases the efficiency with which a resource is used tends to increase the rate of consumption of that resource.
• C)the situation where the United States, the most capital-abundant country in the world, exported labor-intensive commodities and imported capital-intensive commodities.
• D)the situation where the more dollars foreign countries held, the less faith they had in the ability of the U.S.government to convert those dollars.
• E)a situation during recession wherein when everyone tries to save more money, and it leads to a fall in the aggregate demand which in turn lowers total savings in the population.

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Definitions:

Order Size

The quantity of assets bought or sold in financial markets, determining the scale of a trade.

Restocking Quantity

The volume of stock replenished in inventory after selling out or reducing existing stock levels to accommodate for future sales.

Credit Terms

The conditions under which credit will be extended to a borrower, including repayment schedule, interest rate, and the timeframe of the loan.

Merchandise

Goods or products that are bought, sold, or traded in the course of business operations.