A country is said to be in balance-of-trade equilibrium when
A) it has the potential to produce all goods that its residents want without engaging in foreign trade.
B) the income its residents earn from exports is equal to the money its residents pay for imports.
C) the country imports all goods that its residents want by engaging in foreign trade.
D) it has the potential to balance the production and procurement of the basic amenities that it needs.

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