An autonomous fall in M from a condition of equilibrium in national income and in the trade balance results in the nation's income:
A) rising and its trade balance turning to deficit
B) falling and its trade balance turning into surplus
C) rising and its trade balance turning into surplus
D) rising and the trade balance remaining in equilibrium
Correct Answer:
Verified
Q1: A depreciation of a deficit nation's currency
Q2: The improvement in a nation's balance of
Q4: In the real world,the automatic income,price,and interest
Q5: If MPS=0.2 and MPM=0.3,the foreign trade multiplier
Q6: In order to isolate the income adjustment
Q7: A benefit of automatic adjustment mechanisms is
Q8: By itself,the automatic income adjustment mechanism is
Q9: When S exceeds I,an open economy has
Q10: The income elasticity of imports is given
Q11: The marginal propensity to consume measures:
A)the ratio
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents