Running Trade Deficits in Some Periods and Trade Surpluses in Others

question 89

Multiple Choice

Running trade deficits in some periods and trade surpluses in others allows a country to:

• A) run budget deficits.
• B) increase consumption in every period.
• C) smooth consumption.
• D) increase interest rates.
• E) increase the value of its currency vis-à-vis other currencies.

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Definitions:

Lie Detector

A machine or procedure that attempts to determine whether a person is telling the truth by measuring physiological responses, such as blood pressure, pulse, and respiration.

Planned Behavior

A theory that predicts an individual's intention to engage in a behavior at a specific time and place.

Sexually Transmitted Infections

Infections usually passed from one person to another through sexual contact, including viruses, bacteria, and parasites.

Condom

A barrier device used during sexual intercourse to reduce the risk of sexually transmitted infections (STIs) and pregnancy.