When is a country said to be in balance-of-trade equilibrium?
A)When it does not have a trade deficit
B)When the income its residents earn from exports is less than the money its residents pay to other countries for imports
C)When the current account of its balance of payments is in balance
D)When the income its residents earn from exports is greater than the money its residents pay to other countries for imports

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).

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