At any point to the left of the EB line in the phase diagram:
A) there is inflationary pressure.
B) there is an external surplus.
C) fiscal and monetary policies are too loose.
D) all of the above.

Question

Quizplus · Accepted Answer

To the left of the EB (External Balance) line in a phase diagram, there is typically an external surplus, meaning the country is exporting more than it is importing.

At Any Point to the Left of the EB Line