A trade surplus exists if export spending is less than import spending.
67) An index of the weighted exchange value of the U.S. dollar versus the currencies of a broad group of major U.S. trading partners is called the trade-weighted dollar.
68) Stating the dollar has strengthened against the yen means the dollar has depreciated.
69) The value at which one currency can be exchanged for another currency is called the real exchange rate.
70) Net exports are positively related to income in the rest of the world.
71) Currency appreciation will decrease net exports.
72) In an open mixed economy, injections are saving, taxation, and import spending.
73) The trade balance must equal the level of private and public saving in the country.
74) A lending of a country's savings that occurs when the country has a trade deficit and its citizens purchase real and financial assets from abroad is called a capital inflow.
75) Borrowing from another country that occurs when the country has a trade deficit and its citizens sell real and financial assets to foreigners is called a capital inflow.
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