Which Chain of Events Would Promote Payments Equilibrium for a Surplus

question 100

Multiple Choice

Which chain of events would promote payments equilibrium for a surplus nation,according to the price-adjustment mechanism?

• A) Increasing money supply--increasing domestic prices--rising imports--falling exports
• B) Increasing money supply--falling domestic prices--rising imports--falling exports
• C) Decreasing money supply--increasing domestic prices--falling imports--rising exports
• D) Decreasing money supply--decreasing domestic prices--falling imports--rising exports

---

Definitions:

Note Receivable

A financial asset representing a written promise for the repayment of a loan or debt within a specific timeframe.

Note Payable

A written promise to pay a specified amount of money, usually including interest, at a future date.

Bank Statement

A summary of financial transactions that occurred over a period of time on a bank account held by a person or business with a financial institution.

Depositor's Account

A banking account that holds funds deposited by an individual or entity.