In a Small Open Economy, If Exports Equal $15 Billion

question 89

Multiple Choice

In a small open economy, if exports equal $15 billion and imports equal $8 billion, then there is a trade ______ and ______ net capital outflow.

• A) deficit; negative
• B) surplus; negative
• C) deficit; positive
• D) surplus; positive

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Definitions:

Ancient Roman Empire

A vast empire that existed from 27 B.C. to A.D. 476 in the Mediterranean region, known for its military power, architectural innovations, and contribution to law.

Permanent Settlement

A long-term or indefinite living arrangement in a specific location, often implying the establishment of communities or civilizations.

Hispaniola

An island in the Caribbean, which is currently shared by two sovereign nations: the Dominican Republic and Haiti.

Spanish Reconquista

The period from the 8th to the 15th century during which Christian kingdoms in the Iberian Peninsula reconquered territory from Muslim rulers.