During the Second Quarter of 1989 It Is Believed That

question 20

Multiple Choice

During the second quarter of 1989 it is believed that Japanese investors bought a significant proportion of U.S.corporate stocks and bonds sold during this period.The required purchase of dollars

• A)reduced the trade deficit of that year.
• B)provided yen to purchase imported goods by U.S.citizens.
• C)led to a trade surplus for that year.
• D)led to a trade deficit for that year.

---

Definitions:

Budget Surplus

A situation where a government's revenues exceed its expenditures within a specific period.

Equilibrium Output

The level of output at which the quantity of goods produced equals the quantity of goods consumed, often resulting in market stability.

Short-Run Aggregate Demand

The total amount of goods and services that will be purchased at all possible price levels in an economy in a short period.

Aggregate Supply Curve

A graphical representation showing the relationship between the overall price level in an economy and the total output produced by firms.