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:

Inoculation

A preventive strategy, often in the form of a vaccine, to protect against infectious diseases.

Dental Work

Medical procedures and treatments involving the teeth and gums, including fillings, extractions, cleanings, and orthodontics.

Stress

A physical or psychological response to external stimuli that are perceived as challenging or threatening to an individual's well-being.

Shocks

In a psychological context, refers to an unexpected or disturbing event that causes emotional distress. In a physical context, it can refer to a sudden and violent blow or impact.