Balance of Trade Refers to

question 87

Multiple Choice

Balance of trade refers to

• A)the sum of all a nation's imports and exports.
• B)the difference between the monetary value of a nation's exports and imports.
• C)the comparison of total exports from one country to another.
• D)the difference between projected sales and actual sales for a nation's exports.
• E)the state of equilibrium when two neighboring nations participate in countertrade.

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Definitions:

Public Outlay

The total amount of government spending, including expenditures on public services, infrastructure, and welfare programs.

Printing Money

The process by which the central bank increases the money supply by physically creating more currency.

Deflation

A decrease in the general price level of goods and services, often indicating a contraction in the supply of money and credit in the economy.

Natural Resources

Raw materials supplied by nature that are used to produce goods and services.