The Elasticities Approach to the Balance of Trade Is Concerned

question 44

Multiple Choice

The elasticities approach to the balance of trade is concerned with how:

• A) Currency pegs alter the market for imports and exports.
• B) Government deficits influence the balance of trade.
• C) The balance of trade is altered by changing relative prices of domestic and foreign goods.
• D) The ratio of domestic spending to domestic production influences the balance of trade.

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Definitions:

Distinctiveness

The characteristic of being clearly different from others in some aspect or quality.

Classroom Computer

A computer used within an educational setting to enhance learning, facilitate teaching, and provide access to digital resources.

Consistency

The quality of being predictable, reliable, and steady over time.

Discounting Principle

A concept in psychology which suggests that when there are multiple causes for a behavior, the importance or contribution of any single cause is reduced.