If a Country Has a Trade Surplus Then

question 60

Multiple Choice

If a country has a trade surplus then

• A)S > I and Y > C + I + G.
• B)S > I and Y < C + I + G.
• C)S < I and Y > C + I + G.
• D)S < I and Y < C + I + G.

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Definitions:

Paid-in Capital

The amount of money that a company receives from selling shares of stock directly to investors, not including any later earnings or profits.

Common Stock

A type of equity security that represents ownership in a corporation, with rights to dividends and voting in corporate matters.

Treasury Stock

Shares of a company's own stock that it has reacquired but not yet retired or resold.

Paid-in Capital

The amount of money that a company has received from shareholders in exchange for shares of stock, reflecting the investment in the business.