Assume That a Country Currently Has a Trade Surplus

question 50

Multiple Choice

Assume that a country currently has a trade surplus.If that country experiences an expansion in economic activity,what would we expect to happen to the trade surplus?

• A) Nothing,because expansions do not impact the trade surplus.
• B) Imports tend to be higher during this time,which decreases the trade surplus.
• C) Exports tend to be lower during this time,which increases the trade surplus.
• D) Exports tend to be higher during this time,which decreases the trade surplus.
• E) Imports tend to be lower during this time,which increases the trade surplus.

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