Which of the following undesirable results will most likely occur for a country running a favorable balance of trade?
A)higher unemployment
B)higher domestic interest rates
C)fewer funds to invest abroad
D)granting credit that may be risky

Question

Quizplus · Accepted Answer

A favorable balance of trade, where exports exceed imports, can lead to a country accumulating foreign currency reserves. This situation might lead the country to lend or invest these excess reserves abroad, potentially in risky assets or loans.

Which of the Following Undesirable Results Will Most Likely Occur