Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Economics Question: Explain the concept of the trade balance in the context of a country's balance of payments, and how does it relate to international

Economics Question: Explain the concept of the "trade balance" in the context of a country's balance of payments, and how does it relate to international trade and economic stability? A) The trade balance has no relation to a country's balance of payments. B) The trade balance measures the difference between a country's exports and imports of goods and services; a trade surplus occurs when exports exceed imports, potentially contributing to economic stability, while a trade deficit occurs when imports exceed exports, potentially leading to economic imbalances. C) The trade balance only considers government spending and has no connection to international trade. D) The trade balance is the total revenue earned by a country from foreign investments.
Don't use chatgpt please provide valuable answer otherwise be ready for disupvote

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Econometric Analysis

Authors: William H. Greene

5th Edition

130661899, 978-0130661890

More Books

Students also viewed these Economics questions