A favorable balance of trade occurs when:
a. goods exports are greater than goods imports.
b. goods imports are greater than goods exports.
c. international trade is an increasing share of total output.
d. the balance on capital account equals the balance on current account.
e. unilateral transfers are positive.
Question 2
The marginal propensity to consume is:
a. the change in disposable income divided by the change in consumption.
b. consumption spending divided by disposable income.
c. disposable income divided by consumption spending.
d. the change in consumption divided by the change in disposable income.
e. the change in consumption divided by disposable income.
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Global Links: African Slave Trade
The Romberg test for balance
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