Which of the following is true when a country's trade position is balanced (i.e.,NX = 0)?

Question

Quizplus · Accepted Answer

When a country's trade position is balanced (i.e., NX = 0), it means that its exports are equal to its imports. This implies that the demand for domestic goods (exports) is equal to the domestic demand for goods (imports), which is the same as saying demand for domestic goods is equal to the domestic demand for goods. Option A is, therefore, the correct answer. Option B and C suggest unequal demand, which is not what a balanced trade position implies. Option D is not related to the question, as it refers to the government's budget balance.

Which of the Following Is True When a Country's Trade