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The Trade Balance of the Country of Utopia Would Be

Question 27

Multiple Choice

The trade balance of the country of Utopia would be in deficit only if:


A) its import of services exceed its export of services.
B) its merchandise exports exceed its merchandise imports.
C) its merchandise imports exceed its merchandise exports.
D) foreign investors invest in domestic assets.
E) the citizens of Utopia purchase foreign securities to earn a high return and diversify their investment.

Correct Answer:

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