EBK ECONOMICS FOR TODAY
9th Edition
ISBN: 8220101414250
Author: Tucker
Publisher: Cengage Learning US
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Chapter 28, Problem 19SQ
To determine
Results of currency appreciation.
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If a country has a trade deficit, what will occur?Choose one answer.a. Imports will exceed exports. b. Exports will exceed imports. c. Imports and exports will be equal. d. Currency will be devalued.
If a country has a trade deficit, what will occur?Choose one answer.
Imports will exceed exports.
Exports will exceed imports.
Imports and exports will be equal.
d. Currency will be devalued
When looking only at the import and export of services, the U.S.
a. has a trade deficit
b. has a trade surplus
c. exports virtually no services
d. has a balanced trade in services
Chapter 28 Solutions
EBK ECONOMICS FOR TODAY
Ch. 28.4 - Prob. 1GECh. 28.6 - Prob. 1GECh. 28 - Prob. 1SQPCh. 28 - Prob. 2SQPCh. 28 - Prob. 3SQPCh. 28 - Prob. 4SQPCh. 28 - Prob. 5SQPCh. 28 - Prob. 6SQPCh. 28 - Prob. 7SQPCh. 28 - Prob. 8SQP
Ch. 28 - Prob. 9SQPCh. 28 - Prob. 10SQPCh. 28 - Prob. 11SQPCh. 28 - Prob. 1SQCh. 28 - Prob. 2SQCh. 28 - Prob. 3SQCh. 28 - Prob. 4SQCh. 28 - Prob. 5SQCh. 28 - Prob. 6SQCh. 28 - Prob. 7SQCh. 28 - Prob. 8SQCh. 28 - Prob. 9SQCh. 28 - Prob. 10SQCh. 28 - Prob. 11SQCh. 28 - Prob. 12SQCh. 28 - Prob. 13SQCh. 28 - Prob. 14SQCh. 28 - Prob. 15SQCh. 28 - Prob. 16SQCh. 28 - Prob. 17SQCh. 28 - Prob. 18SQCh. 28 - Prob. 19SQCh. 28 - Prob. 20SQ
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Similar questions
- As domestic currency appreciates, we would expect a. Trade deficit to decrease. b. Trade deficit to increase. c. Imports to decrease. d. Exports to increase.arrow_forwardA balance of payments deficit is defined as the amount by which a. quantity supplied of a country’s currency exceeds quantity demanded. b. a currency must appreciate in order to reach equilibrium. c. a country’s exports exceed its imports. d. quantity demanded of a country’s currency exceeds quantity supplied.arrow_forwardIf there is a decrease in the desire of Americans to purchase goods and services from other countries and put money in foreign banks and businesses then how would this affect the U.S. foreign exchange market? A. The equilibrium quantity of foreign currency would increase and the US dollar would appreciate. B. The equilibrium quantity of foreign currency would decrease and the US dollar would appreciate. C. The equilibrium quantity of foreign currency would increase and the US dollar would depreciate.arrow_forward
- A positive balance of trade is when: A. imports are greater than exports B. exports are greater than imports C. exports equal imports D. All of the Abovearrow_forwardWhich of the following will increase the trade deficit of the US? a. The US dollar depreciating in the foreign currency exchange market b. The US selling 1 million tons of soy to India c. US firms buying capital goods from Japan d. South American citizens increasing tourist visits to the USarrow_forwardSuppose the country of Lilliput exported $293 billion worth of goods and imported $473 billion worth of goods in the last calendar year. a. Calculate Lilliput's balance of trade. $ b. Which type of trade balance is Lilliput running? a trade surplus a trade deficit neither a trade deficit nor a trade surplus billionarrow_forward
- a. Discuss the ways that running a trade deficit could result in either a healthy economy or a weaker economy b. What factors determine a country’s level of trade? What is the difference between the balance of trade and level of trade?arrow_forwardThere will be a decrease in the US trade deficit if there is an increase in a. an appreicating currency b. a decrease in net capital outflow c. US exports to the eurozone d. US demand for chinese goodsarrow_forwardWhich policy measure is most likely to be effective in reducing a balance of trade deficit? Pick a,b,c, or d A. A reduction in the rate of interest B. A reduction in income tax C. Devaluation of the currency D. An increase in government spending on state benefitsarrow_forward
- = A nation has a favorable balance of trade when Listen it has a surplus in its balance of payments. it has a deficit in its balance of payments. the value of its imports is greater than the value of its exports. merchandise exports exceed merchandise imports. it has high tariffs. Karrow_forwardAn economy can run a trade deficit (have negative exports) permanently if: a. The Current and Financial account generate a net outflow of money, and the external debt does not increase as percentage of GDP. b. The level of GDP of the country is sufficiently low. c. Migration of the national labour force to overseas is allowed. d. The Current and Financial account bring enough net inflow of money, and the external debt does not increase as percentage of GDP.arrow_forwardWhat impact does a depreciation of a country's currency have on its balance of trade? A. It increases the price of exports and decreases the price of imports, worsening the balance of trade. B. It decreases the price of exports and increases the price of imports, improving the balance of trade. C. It increases the price of exports and decreases the price of imports, improving the balance of trade. D. It decreases the price of exports and increases the price of imports, worsening the balance of trade.arrow_forward
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