An increase in foreign income generally leads to:

Related MCQs

• Within the circular flow of income, an increase in domestic income will tend to increase
• The quantity of dollars supplied to the foreign Exchange market would increase if, other things remaining equal:
• Devaluation leads to
• If Debit balance in the balance of payment accounts are greater than the Credit balance it leads to
• According to the Heckscher - Ohlin model, if the United States is richly endowed in human capital relative to Mexico, then as NAFTA increasingly leads to more bilateral free trade between the two countries,
• Under a fixed exchange rate system, a contractionary fiscal policy leads to a worsening in a nation’s balance-of-payments position if the resulting:
• To financelarge U.S. federal Budget deficits, the Federal Reserve increases the money supply. This leads to a surplus of dollars world wide. What happens to the U.S. dollar and trade?
• The foreign exchange rate is NOT
• Foreign trade creates among countries:
• All are advantages of foreign trade EXCEPT: