Question

The balance of payments

is determined by trade of imports and exports

is determined by investment flows

always balances

Is improved when interest rates rise

Imposition of new tariffs

Generally increases consumer surplus

Generally creates a deadweight loss

Normally decreases government revenues

Generally decreases domestic producer surplus

Answer 1

Solution:-

1.is determined by trade of imports and exports

Explaination:-The balance of payments is determined by trade of imports and exports.he BOP helps economists and analysts understand the strength of a country's economy in relation to other countries. For example, a country with a large trade deficit is essentially borrowing money to purchase goods and services, but a country with a large trade surplus is doing the opposite.

2.Generally decreases domestic producer surplus

Explaination:-Generally decreases domestic producer surplus Is improved when interest rates rise Imposition of new tariffs.Tariffs will increase government revenue.Tariffs increase the cost of imports, leading to higher prices (P1 to P2) for consumers and a decline in consumer surplus.