If the Trade Surplus Has Fallen, Which of the Following

question 41

Multiple Choice

If the trade surplus has fallen, which of the following is a possible explanation?

• A) The real exchange rate rose.
• B) Foreign income fell.
• C) Domestic income fell.
• D) The foreign price level rose.

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Definitions:

Governor Cut-in

The point at which a governor device starts to regulate or limit the speed, pressure, or other operational parameters to prevent system overloads.

Tractor Protection Valve

A safety device in air-braked vehicles that preserves air for the tractor in case of a trailer brake system failure.

Low Air Pressure

A condition where there is an insufficient amount of air within a pneumatic system or tire, which can affect performance.

Psi

Psi stands for pounds per square inch, a unit of pressure used to measure the force exerted per unit area.