A country is said to be in balance-of-trade equilibrium when
A) the income its residents earn from exports is equal to the money its residents pay to other countries for imports.
B) it produces all the goods needed for domestic consumption.
C) the income its residents earn from imports is equal to the money its residents pay to other countries for exports.
D) it produces all the goods needed for exportation.

Question

Quizplus · Accepted Answer

A country is said to be in balance-of-trade equilibrium when the income its residents earn from exports is equal to the money its residents pay to other countries for imports (the current account of its balance of payments is in balance).

A Country Is Said to Be in Balance-Of-Trade Equilibrium When