If a Country Is Exporting More Goods and Services Than

question 64

Multiple Choice

If a country is exporting more goods and services than it is importing,we should consider this to be "beneficial" only in the sense that it

• A)allows a country to add to its foreign-exchange reserves above the level needed to cope with fluctuations in private payments.
• B)represents an accumulation of assets for the domestic economy that can be used in the future to finance consumption.
• C)increases the standard of living through a larger national income.
• D)is a necessary condition to enable a country to take full advantage of scale economies.
• E)means that an economy is earning more than it is spending.