How does a trade surplus impact a country's economy? Question 5 options: It reduces foreign investment It can lead to currency appreciation It increases inflation It can create jobs in export industries
Added by Kevin A.
Step 1
This means the country is selling more goods and services to other countries than it is buying from them. Show more…
Show all steps
Your feedback will help us improve your experience
Pragya Ahuja and 65 other Microeconomics educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
How can a large balance-of-payments surplus contribute to a country's inflation rate?
How does a decrease in value of a country's currency relative to other currencies affect its balance of trade? a. A decrease in value of a country's currency relative to other currencies reduces imports, raises exports, and reduces the balance of trade. b. A decrease in value of a country's currency relative to other currencies raises imports, reduces exports, and reduces the balance of trade. c. A decrease in value of a country's currency relative to other currencies reduces imports, raises exports, and increases the balance of trade. d. A decrease in value of a country's currency relative to other currencies raises imports, reduces exports, and increases the balance of trade.
Andrew D.
The rise in foreign countries real GDP will increase import and caused domestic currency to depreciate. increase export and caused domestic currency to depreciate. increase import and caused domestic currency to appreciate. increase export and caused domestic currency to appreciate.
Hamzah C.
Recommended Textbooks
Principles of Economics
Principles of Microeconomics for AP® Courses
Economics
Transcript
18,000,000+
Students on Numerade
Trusted by students at 8,000+ universities
Watch the video solution with this free unlock.
EMAIL
PASSWORD