Question

If there is a trade surplus there will be a capital --A.Inbound flow.B.Incoming flow.C.Inward flow.D.Outflow Given...

If there is a trade surplus there will be a capital --A.Inbound flow.B.Incoming flow.C.Inward flow.D.Outflow

Given that there is a decrease in transactions demand for money the? ----A.Money supply curve shifts to the right.B.Money supply curve shifts to the left.C.Money demand curve shifts to the left. D.Money demand curve shifts to the right

According to the consumption trade-off which of the following is correct?A.Resources are diverted away from the production of some goods today to produce goods that will create more goods and services in the future.B.Resources are diverted away from the production of some goods today to produce goods that will create fewer goods and services tomorrow.C.Resources are diverted away from the production of some goods today to produce goods that will create fewer goods and services in the future.D.Resources are diverted away from the production of some goods today to produce goods that will create fewer goods and services currently.

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Answer #1

Answer 1 :

Trade surplus is when the exports are greater than the imports, thus for BOP to balance the capital market must be in deficit, thus there must be a capital outflow from the economy.

So Answer ‘Outflow’ is Correct.

Answer 2 :

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