Which of the following is true?
a. U.S. imports are considered a credit item in the balance of payment, because the dollars sold to buy the necessary foreign currency add to foreign claims against U.S. buyers.
b. When the U.S. runs a trade deficit in goods and services with the rest of the world, the rest of the world must be running a trade surplus in goods and services with the U.S.
c. When the U.S. runs a trade deficit in goods, it must run a trade surplus in services.
d. None of the above is true.
Question 2
The process by which a legislator votes in favor of the legislation of other lawmakers in order to gain support for her own legislation is known as:
a. pork barrel legislation.
b. logrolling.
c. the median vote model.
d. none of the above
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