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Home / Questions / Which year marked a major turning point in the history of the U S balance of trade

Which year marked a major turning point in the history of the U S balance of trade

 Which year marked a major turning point in the history of the U.S. balance of trade?

a.1960

b.1965

c.1995

d.1975

e.2000

82.              When the value of U.S. merchandise exports is less than the value of U.S. merchandise
                            imports,

a.the exchange rate, other currencies per dollar, appreciates

b.the value of the dollar must fall

c.there will be an increase in the demand for dollars

d.an unfavorable balance of trade results

e.foreign currency reserves must fall

83.              Foreign investment in the U.S. causes the

a.balance on current account to become positive

b.sum of the capital and current accounts to be positive

c.balance of trade to become negative

d.quantity of imported services to increase

e.value of the dollar to increase

84.              Capital accounts measure

a.the foreign asset holdings of a nation and that nation’s asset holding abroad

b.d and e

c.changes in the foreign asset holdings of a nation and the difference between its
exports and imports

d.the difference between a nation’s exports and imports

e.changes in the foreign asset holdings of a nation and that nation’s asset holdings
abroad

85.              If Egypt has a chronic unfavorable balance of trade, it will eventually lead to

a.the Egyptian government’s decision to appreciate its currency (the pound)

b.the Egyptian government’s decision to devalue its currency (the pound)

c.the Egyptian government’s policy to create a favorable balance of payments

d.the Egyptian government’s policy to create a favorable balance on current account

e.a negative balance of payments

86.              When Mexico’s exchange rate depreciated dramatically in 1994,

a.American exports to Mexico increased

b.American exports to Mexico declined

c.Mexican tourism to the U.S. increased

d.American tourism to Mexico decreased

e.Mexicans received more dollars for their peso

87.              In August, the Canadian wheat harvest is in and exports to wheat-consuming nations
                            begin in earnest. We would expect to see the Canadian rate of exchange

a.increase because there is an increase in the demand for Canadian wheat, which
means an increase in the demand for Canadian dollars

b.decrease because there is an increase in the demand for Canadian wheat, which
means an increase in the demand for Canadian dollars

c.increase because there is an increase in the demand for Canadian wheat, which
means an increase in the supply of Canadian dollars

d.increase because there is a decrease in the demand for Canadian wheat, which
means an increase in the supply of Canadian dollars

e.remains fixed because the exports create a counterbalance of imports

88.              In winter, Europeans and Americans flock to Switzerland to ski. We would expect to see
                            the Swiss franc

a.depreciate because there is an increase in the demand for Swiss goods and services,
which means an increase in the demand for Swiss francs

b.appreciate because there is an increase in the demand for Swiss goods and services,
which means a decrease in the demand for Swiss francs

c.remain fixed because the demand for Swiss goods and services is counterbalanced by
the supply of Swiss goods and services

d.appreciate because there is an increase in the demand for Swiss goods and services,
which means an increase in the demand for Swiss francs

e.restored to equilibrium because the summer months see Swiss tourists in Europe and
the U.S.

89.              When the government fixes its exchange rate

a.it creates an unfavorable balance of trade

b.it creates trade surpluses

c.it does so to allow the exchange rate to reach equilibrium

d.it acts as an arbitrager

e.it is not unlike a government policy to control agricultural prices

90.              With the increasing normalization of relations with China, more and more Chinese goods
                            appear on the U.S. market. Haven’t you noticed it? If we buy more from China than
                            China buys from us, then

a.the Chinese currency (the yuan) appreciates and we have an unfavorable balance of
trade with China

b.the Chinese currency (the yuan) depreciates and we have an unfavorable balance of
trade with China

c.the Chinese currency (the yuan) appreciates and we have a favorable balance of
trade with China

d.our balance of payments becomes increasingly negative

e.our balance of payments becomes increasingly positive

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