A surplus in a country's trade balance means that:
A)net exports exceed transfer payments.
B)the country's currency is over-valued.
C)the value of net exports is positive.
D)imports into the country exceed exports.
E)domestic savings exceeds domestic investment.

Question

Quizplus · Accepted Answer

A surplus in a country's trade balance means that the value of net exports (exports minus imports) is positive, indicating that the country is exporting more than it is importing. A surplus in the trade balance is generally seen as a positive development, as it can lead to increased foreign exchange reserves, higher economic growth, and lower unemployment.

A Surplus in a Country's Trade Balance Means That