Which of the Following Could Result from a Balance-Of-Trade Deficit

question 23

Multiple Choice

Which of the following could result from a balance-of-trade deficit?

• A)The value of the dollar increases,so Americans can buy more goods from other countries for the same amount of money.
• B)The value of the dollar declines,so Americans have to pay more for goods from other nations.
• C)The value of the dollar increases,making American products cheaper abroad,thereby increasing our exports.
• D)The value of the dollar declines,which makes American products more expensive abroad,thereby decreasing our exports.

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Definitions:

Mutual Mistakes

A situation in a contract where all parties have a misunderstanding or incorrect belief about a basic assumption on which the contract is based.

Voidable

A term for an agreement or contract that may appear valid but can be legally voided by one of the parties.

Concealment

The active hiding of the truth about a material fact.

Nondisclosure

A legal agreement or clause that prohibits sharing confidential information with unauthorized parties.