What Happens If the Trade Balance Is in Surplus by More

question 114

Multiple Choice

What happens if the trade balance is in surplus by more than a nation's service payments on its external debt?

• A) The nation's net external wealth declines.
• B) The nation's net external wealth increases.
• C) The nation's net external wealth is constant.
• D) The nation must run a trade deficit during the subsequent period.

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Definitions:

American Revolutionary

A participant or supporter in the American Revolution, fighting for independence from British rule during the late 18th century.

Revolutionary War

The conflict between Great Britain and its thirteen American colonies from 1775 to 1783 that resulted in the colonies gaining independence and forming the United States of America.

Negotiations

The process by which two or more parties aim to reach a mutual agreement through dialogue and compromise on a matter of mutual interest.

Treaty of Fort Stanwix

A 1768 agreement between Native American nations and British colonists, establishing boundary lines in what is now the United States.