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Fundamentals of Business Economics

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Question # 1

A car dealer uses the following trend equation to estimate the number of cars sold each quarter

Y = 120 + 3t

Where y = number of cars sold each quarter and t = time period expressed in units

What is the forecasted number of cars sold in period 12. if there is an additive seasonal factor of 55?

Options:

A.  

156

B.  

101

C.  

211

D.  

139

Discussion 0
Question # 2

Company GHI wishes to develop a linear model for forecasting tractor sales based on the number of sales people it employs. In the model, tractor sales will be the dependent variable and the number of sales people the independent variable

The company has collected sales data from each of its branches over the past year which has been reported below:

Question # 2

Question # 2

Options:

Discussion 0
Question # 3

The following scatter diagram displays the total life expectancy in years on the X axis and GDP per capita (constant 2000 S) on the Y axis, in Country S for the past 40 years. Which of the following statements is true in respect of the graph?

Question # 3

Options:

A.  

A perfect positive linear relationship is shown in the diagram.

B.  

In most years, the samples shows a clear negative trend in the diagram

C.  

There is no correlation between the level of GDP per capita and life expectancy.

D.  

In some years, the level of GDP per capita and life expectancy moved in opposite directions.

Discussion 0
Question # 4

Which of the following describes the slope of a normal supply curve?

Options:

A.  

Upwards from right to left.

B.  

Upwards from left to right.

C.  

Downwards from left to right.

D.  

Downwards from right to left.

Discussion 0
Question # 5

An institution offers an 8 percent compound interest rate annually for six years, for an investment of S250,000 What is the total amount of interest that would be received over the six years'?

Options:

A.  

$370,000.00

B.  

$396718.58

C.  

$146,718.58

D.  

$120.000 00

Discussion 0
Question # 6

Which of the following types of graph uses cumulative frequency distributions to illustrate information?

Options:

A.  

Bar chart

B.  

Histogram

C.  

Scatter graph

D.  

Ogive

Discussion 0
Question # 7

If the production of a good involves an external social cost, resource allocation could be improved by:

Options:

A.  

providing a subsidy for the consumers of the good

B.  

imposing an indirect tax on the good

C.  

providing a subsidy for the producers of the good

D.  

the government imposing price controls to reduce the price of the good.

Discussion 0
Question # 8

Which of the following statements defines a diseconomy of scale?

Options:

A.  

A reduction in the unit average cost caused by increasing the scale of production in the long run.

B.  

An increase in the unit average cost caused by increasing the scale of production in the long run

C.  

An increase in the unit average cost caused by decreasing the scale of production in the long run.

D.  

A reduction in the unit average cost caused by decreasing the scale of production in the long run.

Discussion 0
Question # 9

Which of the following organisational arrangements is an example of a multinational corporation (MNC)?

Options:

A.  

An insurance company based in Country E opens a sales office in Country F in order to service the local market

B.  

A music production company based in Country C signs a contract with an artist's management company based in Country

D.  

C.  

A retailer based in Country G uses an online retail platform in order to sell goods to customers in Country H.

D.  

A chain of restaurants based in Country B signs a franchise agreement with a company that intends to open restaurants in Country

A.  

Discussion 0
Question # 10

An investor has bought a financial asset that pays a variable interest rate at the end of a three-year period At the same time, the invest forward rate agreement (FRA) on an agreed forward rate of 3% at the asset's maturity. What is the advantage of the FRA?

Options:

A.  

If the market interest rate at the asset's maturity is lower than 3%. the bank will pay the investor for the difference in rates

B.  

If the market interest rate at the asset's maturity is lower than 3%. the asset's maturity will be extended for another year

C.  

If the market interest rate at the asset's maturity is higher than 3%, the investor will have the option to drop the FRA upon payment

D.  

If the market interest rate at the asset's maturity is higher than 3%, the investor will be able to receive the higher market rate

Discussion 0
Question # 11

The term 'financial intermediation' refers to the role of:

Options:

A.  

commercial banks m providing credit facilities for customers

B.  

banks in providing business customers with access to financial markets

C.  

the financial system in linking net savers with net borrowers.

D.  

central banks as providers of liquidity to the banking system

Discussion 0
Question # 12

Country A's tax system is one where every citizen pays tax on earned income over S12,000 per year. The amount of tax paid as a percentage of income rises as individuals income levels rise.

Which of the following describes the nature of the tax paid by individuals in Country A?

Options:

A.  

Progressive

B.  

Regressive

C.  

Retentive

D.  

Proportional

Discussion 0
Question # 13

Which of the following will result in an increase in demand for domestic currency?

Options:

A.  

An increase in exports.

B.  

A rise in imports.

C.  

More domestic companies invest abroad.

D.  

Outward financial flows.

Discussion 0
Question # 14

Which TWO of the following are positive impacts for a national economy which hosts a multinational company's (MNC) production facilities within their country"?

Options:

A.  

Mobile MNCs mean that operations can easily be transferred from one economy to another.

B.  

MNCs provide employment opportunities in other countries for skilled workers from the host country.

C.  

Local producers can copy superior processes from the MNC which raises productivity within the recipient economy.

D.  

Direct financial investment should improve economic welfare as capital is transferred to economies where the marginal rate of return on capital is highest

E.  

MNCs can use transfer pricing to ensure taxes are minimised within a recipient economy.

Discussion 0
Question # 15

A market is in equilibrium. If the government imposes a minimum price above the equilibrium price, there will be:

Options:

A.  

an extension in demand, a contraction in supply and a market shortage

B.  

a decrease in demand, an extension in supply and a market surplus

C.  

a contraction in demand, an increase in supply and a market surplus

D.  

a contraction in demand, an extension in supply and market surplus

Discussion 0
Question # 16

Firms in competitive markets can earn only normal profit in the long run because:

Options:

A.  

they produce homogeneous products

B.  

there are no barriers to entry into these markets

C.  

production costs are the same for all producers

D.  

of the absence of economies of scale

Discussion 0
Question # 17

If a manufacturing firm contributes to global warming as a byproduct of its production process, this is an example of

Options:

A.  

A merit good

B.  

An external social cost

C.  

A diseconomy of scale

D.  

A public good

Discussion 0
Question # 18

Why do monopoly market structures charge higher prices than would be charged by more competitive market structures?

Options:

A.  

They are more likely to suffer from diseconomies of scale

B.  

They must recover their higher research and development expenditures

C.  

They can increase profits by reducing output to force prices higher

D.  

They have barriers to entry that stop customers going to new markets

Discussion 0
Question # 19

The 'satisfying' model of business behavior states that business will aim to:

Options:

A.  

seek profits as the primary business objective

B.  

concentrate on the long run growth of sales

C.  

attempt to meet the differing demands of various stakeholders

D.  

satisfy shareholders demands to maximize shareholder wealth

Discussion 0
Question # 20

All of the following would tend to lead to an industry being dominated by a small number of firms except one. Which ONE is the exception?

Options:

A.  

Significant economies of scale in production

B.  

The existence of entry barriers to the industry

C.  

High initial capital costs in production

D.  

Extensive consumer knowledge of products and prices

Discussion 0
Question # 21

The market demand for a good has a price elasticity of demand of 0.4. Which of the following statements is correct?

Options:

A.  

Consumer expenditure will fall as price rises

B.  

Producers' incomes will rise as price falls

C.  

It is a product with many close substitutes

D.  

Total quantity sold will fall as price rises

Discussion 0
Question # 22

All of the following statements about a firms total revenue curve are true except which ONE?

Options:

A.  

Because the price of a product falls as more is supplied to the market the curve is not a straight line

B.  

Price elasticity of demand for the product = 1 at the highest point of the curve

C.  

If price of the product rose the curve would pivot upwards

D.  

The curve would be a horizontal straight line if demand for the product were perfectly price elastic

Discussion 0
Question # 23

Which of the following can be efficiently allocated between competing uses by the price mechanism?

Options:

A.  

Private goods

B.  

Public goods

C.  

Free goods

D.  

Externalities

Discussion 0
Question # 24

A rise in the demand for petrol by motorists is likely to follow a rise in the price of:

Options:

A.  

Steel

B.  

Second-hand cars

C.  

Public transport

D.  

Motor insurance

Discussion 0
Question # 25

Which of the following are examples of long run internal economies of scale?

i. Mass production using robot machine tool technology

ii. Obtaining lower prices when buying raw materials in bulk

iii. Long run technical change in the industry

iv. The emergence of specialized training institutions for the industry

v. Lower borrowing costs for large firms

vi. The spreading of fixed costs over a larger output

Options:

A.  

(i), (ii) and (iii) only

B.  

(ii), (iii) and (v) only

C.  

(i), (ii) and (v) only

D.  

(i), (iv) and (vi) only

Discussion 0
Question # 26

Which ONE of the following is NOT a class of stakeholder?

Options:

A.  

Connected

B.  

Internal

C.  

External

D.  

Collaborative

Discussion 0
Question # 27

A firm will maximize profits by producing at that level of output where

Options:

A.  

average total cost is at a minimum

B.  

average revenue is at a maximum

C.  

the difference between total costs and total revenue is greatest

D.  

the difference between average revenue and average variable cost is greatest

Discussion 0
Question # 28

Production of a good is in the public interest if

Options:

A.  

Social benefits are greater than social costs

B.  

Private benefits equal private costs

C.  

External benefits equal external costs

D.  

Social costs are greater than private costs

Discussion 0
Question # 29

Country X is a country highly reliant on its oil exports. However, in recent months, oil prices have fallen by 20%. It is located near Country Y, an oil exporter which is a member of a trading bloc. Country X has some coal reserves, but faces stiff competition from Country Z, a member of the trading bloc, which also exports coal.

Which of the following would be the most effective way for the government to alleviate these circumstances?

Select ALL that apply.

Options:

A.  

Purchase oil produced within the country in order to support the domestic oil industry

B.  

Invest in retraining those working in the oil industry so they can enter other domestic industries which are currently more profitable

C.  

Dump its oil exports into the trading bloc by exporting the oil at an artificially low price

D.  

Begin extracting and exporting coal as a substitute for oil

E.  

Allow the oil industry in Country X without any further investment to fail as it is a sunset industry

Discussion 0
Question # 30

Which of the following is an example of fiscal policy?

Options:

A.  

The central bank imposing controls on bank lending

B.  

The removal of foreign exchange controls which restrict the transfer of currencies between countries

C.  

The removal of regulations which restrict Sunday trading

D.  

The creation of tax-exempt savings accounts to encourage savings

Discussion 0
Question # 31

The Lingford Miracle Association is a registered charity. It is closely associated with Lingford General Hospital. The charity has a number of goals.

Which of the following could potentially be goals set out by the Lingford Miracle Association given the information about the organisation that has been outlined?

Options:

A.  

To provide care for those who are terminally ill

B.  

To maintain a reasonable profit which can then be given as dividends to shareholders

C.  

To use the funding provided by government to further the primary cause of the organisation

D.  

To offer bonuses to the managing director of the organisation when a certain number of sales is reached in a year

E.  

To encourage members of the public to invest in the organisation through buying shares

Discussion 0
Question # 32

Governments provide public goods, such as street lighting, because

Options:

A.  

private business providers would exploit consumers and make excess profits

B.  

it would be an unprofitable activity for private business because of the free-rider problem

C.  

governments are more efficient producers of such goods

D.  

there are significant external costs in the production process

Discussion 0
Question # 33

The management of Pennyfarthing's Toy Bazaar requires financial advice, but is unsure of which type of bank to approach to acquire this. The company receives a profit of £1,000,000 a year, and currently operates in

Europe and North America.

Which of the following reasons explains why Pennyfarthings Toy Bazaar should use a wholesale bank?

Options:

A.  

It has a profit of £100,000

B.  

It has international operations

C.  

It uses the Alternative Investment Market

D.  

It has issued new shares to members of the public

E.  

It is a medium-sized business

Discussion 0
Question # 34

Vencia has recently been faced with international condemnation due to its tendency to engage in 'dirty floating'. This is combined with high interest rates as well as underdeveloped industries.

What would likely be the result of these conditions on Vencia's trade?

Options:

A.  

A lack of investment from businesses in the long-term

B.  

Some investment in the short-term due to high interest rates

C.  

Other countries responding to Vencia's 'dirty floating' in a protectionist manner

D.  

The Bank of Vencia buying treasury bonds to loosen its monetary policy

E.  

The government of Vencia increasing its VAT and basic rate of income tax further

Discussion 0
Question # 35

Atu, a new social media platform, has launched an advertising campaign directed at areas of Country X where there is a higher proportion of young people than elsewhere.

Which source is most likely to have been used by Atu to acquire this data?

Options:

A.  

Demographic statistics published in a census

B.  

The l{ addresses of computers in these areas

C.  

The level of youth unemployment as recorded by the government

D.  

The prominence of other brands focused on young people in the area

Discussion 0
Question # 36

Which THREE of the following businesses are more likely to fare belter during a recession?

Options:

A.  

A construction company specialising in road infrastructure

B.  

A producer of rice, a staple good

C.  

A producer of automobiles, a durable good.

D.  

A producer of security equipment, a counter-cyclical good

E.  

A retailer specialising in fashion, a cyclical good.

F.  

A construction company specialising in private residential accommodation

Discussion 0
Question # 37

A clothes retailer has estimated a linear trend equation including trend, seasonal and cyclical components to forecast its sales for the next four quarters Which of the following factors would generate actual sales figures that are likely to differ markedly from the forecast?

Options:

A.  

A drop in sales due to emergency roadwork blocking access to the store

B.  

A drop in sales due to the ongoing economic recession.

C.  

An increase in sales due to the increasing popularity of their brand.

D.  

An increase in sales before a major religious festival

Discussion 0
Question # 38

The share price of Quench Drinks has been steadily falling for several years despite steady sales and a slight market share increase over the last 5 years. They have been criticised for being full of sugar and not

capitalising on the health food trend.

Quench are starting to face pressure from their shareholders to push the share price back up.

Which of the following would be most likely to improve Quench's standing in the soft drinks market?

Select ALL that apply.

Options:

A.  

Release a new protein shake, QuenchFit

B.  

Publishing an advert in a major magazine promoting QuenchFit and the benefits of healthy living

C.  

Relocate the company to a country with less strict public health guidelines

D.  

Continue as normal

E.  

Appoint a new CEO

Discussion 0
Question # 39

The government of Vencia has set out in its Budget a restrictive set of fiscal policies. These include raising VAT and the basic rate of income tax to 25%. The Bank of Vencia must now implement this Budget as monetary

policy.

Which of the following best outlines how the Bank of Vencia might do this?

Options:

A.  

Halt all ongoing quantitative easing programmes, buy bonds at a higher interest rate and sell treasury bills

B.  

Implement quantitative easing programmes, sell bonds and buy treasury bills

C.  

Lower the capital adequacy ratio, increasing banks' lending power

D.  

Implement quantitative easing programmes, buy bonds and treasury bills

Discussion 0
Question # 40

'The £ has risen against other currencies since August, defying forecasters who thought that the UK's widening trade deficit must cause the £'s exchange rate to fall.'

From the above information, it can be concluded that, since August

Options:

A.  

UK exports have become less price competitive

B.  

The UK inflation rate has increased

C.  

UK interest rates must have increased

D.  

The strengthening pound has improved the UK balance of payments on current account

Discussion 0
Question # 41

All of the following would be likely to result from the process of globalization except one. Which ONE is the exception?

Options:

A.  

Increased foreign competition in domestic markets

B.  

A widening of price differentials between countries

C.  

For businesses, wider access to supplies of inputs

D.  

Increased international capital flows between countries

Discussion 0
Question # 42

Miss Ruby designs and makes large ornaments for grand buildings. She is informed that her range of candle sticks have a price elasticity of-1.2

Which of the following plans would be most appropriate?

Options:

A.  

Produce more candlesticks

B.  

Create more ornate candlesticks which have a higher cost per product

C.  

Run an expensive ad campaign in an interior design magazine

D.  

Increase the price of candle sticks

Discussion 0
Question # 43

The International Monetary Fund uses the funds at its disposal to

Options:

A.  

Assist national governments with a budget deficit

B.  

Assist national governments to repay their National Debts

C.  

Finance specific development projects in Third World countries

D.  

Help member countries with temporary balance of payments deficits

Discussion 0
Question # 44

All of the following were features of the financial crisis of 2008 except one. Which ONE is the exception?

Options:

A.  

A rise in the volume of mortgage defaults

B.  

A chronic shortage of liquidity in the banking system

C.  

A severe contraction in inter-bank lending

D.  

A sharp fall in rate of interest on inter-bank lending

Discussion 0
Question # 45

Real GDP per capita in an economy is directly affected by

(i). The quantity of resources located in the economy

(ii). How efficiently the economy uses resources when producing goods and services

(iii). The size of the working population

(iv). The flow of investment income from abroad

Options:

A.  

(i) and (iv) only

B.  

(i) and (ii) only

C.  

(ii), (iii) and (iv) only

D.  

(i), (ii) and (iii)

Discussion 0
Question # 46

Which ONE of the following was NOT a contributor to the Global Banking Crisis after 2007?

Options:

A.  

Excessive lending to the sub-prime mortgage market

B.  

Excessive lending by commercial banks against limited reserves

C.  

Economic recession and the credit crunch

D.  

Excessively complicated financial assets which disguised risks

Discussion 0
Question # 47

Which of the functions of a financial intermediary is described by the following statement 'Bundles small deposits of liquidity into larger loans'?

Options:

A.  

Aggregation

B.  

Risk management

C.  

Maturity transformation

D.  

Introducing borrows and lenders

Discussion 0
Question # 48

Which of the following describes the eventual increase in bank deposits that will result from the banking system receiving an additional £2bn of cash deposits whilst holding a cash ratio (or reserve ratio) of 7%?

Options:

A.  

£0.28bn

B.  

£2.15bn

C.  

£14bn

D.  

£28.57bn

Discussion 0
Question # 49

Which of the following might be regarded as benefits of the single currency, the Euro?

(i). Greater freedom for member countries to set their own interest rates

(ii). It is easier to compare prices of consumer goods in all countries using the Euro

(iii). A reduction in transactions costs for trade between countries using the Euro

(iv). Increased economic growth resulting from a more efficient common market

Options:

A.  

(i) and (ii) only

B.  

(i), (ii) and (iv) only

C.  

(iii) and (iv) only

D.  

(ii), (iii) and (iv) only

Discussion 0
Question # 50

During recessions many governments borrow to give them funds to increase government expenditure on job creation schemes. They then repay the borrowed funds during the boom phase. This is an example of which of the following?

Options:

A.  

Aggregation

B.  

Medium term borrowing

C.  

Funding

D.  

Open market operations

Discussion 0
Question # 51

Which of the following provide possible explanations for the existence of a structure of interest rates?

(i). Borrowers having different risk profiles

(ii). Lenders wishing to lend for different time profiles

(iii). The market for loanable funds being perfectly competitive

(iv). The existence of margins between borrowing and lending rates

Options:

A.  

(i) and (iv) only

B.  

(ii) and (iii) only

C.  

(i), (ii) and (iv) only

D.  

(i), (ii) and (iii) only

Discussion 0
Question # 52

Which of the functions of a financial intermediary is described by the following statement 'Invests across a wide range of assets to reduce the loss of capital value if a particular borrower defaults'?

Options:

A.  

Aggregation

B.  

Risk management

C.  

Maturity transformation

D.  

Introducing borrows and lenders

Discussion 0
Question # 53

Following the emergence of the global banking crisis in 2007 many central banks undertook quantitative easing through purchasing bonds back from banks with new money. Which function of a central bank does this describe?

Options:

A.  

Banker to the banking system

B.  

Supervision of the banking system

C.  

Banker to the government

D.  

Lender of last resort to the banking system

Discussion 0
Question # 54

Which of the following are not classed as a non-bank financial intermediary?

Options:

A.  

Life insurance companies

B.  

Building societies

C.  

Finance houses

D.  

Investment exchanges

Discussion 0
Question # 55

Which of the functions of a financial intermediary is described by the following statement 'converts a flow of short-term deposits into a supply of long term loans'?

Options:

A.  

Aggregation

B.  

Risk management

C.  

Maturity transformation

D.  

Introducing borrows and lenders

Discussion 0
Question # 56

All other things remaining equal, which of the following would encourage a speculative short-term capital flow into a country's currency?

Options:

A.  

A fall in the country's interest rates

B.  

An expected depreciation of the country's exchange rate

C.  

The abolition by the country of previously-imposed exchange controls which deterred inward investment

D.  

Foreign-based multinational companies locating new factories in the country

Discussion 0
Question # 57

The existence of a natural rate of unemployment means that

Options:

A.  

the short run Phillips curve is steeper that the long run Phillips curve.

B.  

nominal wages rise faster the prices in the long run.

C.  

governments cannot reduce unemployment below this level.

D.  

there is no trade-off between inflation and unemployment in the long run.

Discussion 0
Question # 58

The imposition of a tariff on imported goods by a country's government will result in all of the following except one. Which ONE is the exception?

Options:

A.  

A shift in domestic income from consumers to producers of the goods

B.  

A rise in the domestic price of the imported good

C.  

Greater cost push inflationary pressure in the economy

D.  

A shift to the left in the demand curve for the imported good

Discussion 0
Question # 59

If a country joined an economic union (for example, the European Union) its business sector could benefit from all of the following except which one?

Options:

A.  

Higher profit margins due to a reduction in transport costs.

B.  

Economies of scale as it gained access to a larger market.

C.  

Lower input costs as imports from other member states would become cheaper.

D.  

Reduced costs as a result of access to a wider supply of factors of production.

Discussion 0
Question # 60

Which of the following assertions would not be consistent with supply side economics?

Options:

A.  

Lower taxation increases national income by reducing disincentives to work and invest

B.  

High interest rates may reduce investment expenditure and so harm national income growth

C.  

Increasing aggregate demand will not affect national income or the price level

D.  

Aggregate supply creates its own demand

Discussion 0
Question # 61

Select the best definition of a regressive tax from the options below:

Options:

A.  

A tax which rises proportionately with income

B.  

A tax which rises more than proportionately with income

C.  

A tax which rises less than proportionately with income

D.  

A tax on expenditure

Discussion 0
Question # 62

Which global institution is concerned with co-coordinating economic policies and agreeing banking and financial regulations?

Options:

A.  

The IMF

B.  

The World Bank

C.  

The World Trade Organization

D.  

The G20

Discussion 0
Question # 63

All the following statements relate to an increase in government spending which is not accompanied by an increase in taxation. Which statement is NOT correct?

Options:

A.  

The government's budget deficit will increase

B.  

The aggregate demand curve will shift to the right

C.  

The initial change in government spending may lead to a larger impact upon the economy

D.  

An expansionary monetary policy is being pursued

Discussion 0
Question # 64

Which of the following statements about macroeconomic policy objectives is correct?

Options:

A.  

Governments always regard control of inflation as the most important policy objective

B.  

Conflicts between objectives mean that macroeconomic policy can never be regarded as successful

C.  

Expanding demand to reduce unemployment may mean that the balance of payments worsens

D.  

The pursuit of economic growth inevitably increases unemployment

Discussion 0
Question # 65

In the aggregate supply and demand model, a significant rise in the cost of energy for industry would lead to the

Options:

A.  

Aggregate supply curve moving to the right

B.  

Aggregate supply curve moving to the left

C.  

Aggregate demand curve moving to the right

D.  

Aggregate demand curve moving to the left

Discussion 0
Question # 66

The business sector will be affected by a contraction in the money supply because

Options:

A.  

Interest rates will tend to fall, thus reducing business costs.

B.  

Inflation will fall and thus demand in the economy will expand.

C.  

Consumer credit will contract thus reducing consumer demand.

D.  

The exchange rate will fall thus making business more internationally competitive.

Discussion 0
Question # 67

The level of national income in the circular flow will remain constant if

Options:

A.  

injections are greater than withdrawals

B.  

injections are equal to withdrawals

C.  

injections are equal to savings

D.  

injections plus withdrawals are equal to savings plus investment

Discussion 0
Question # 68

As the process of globalization increases, typical businesses will

Options:

A.  

Depend more and more on their domestic markets.

B.  

Have to raise more capital from internal sources.

C.  

Have less need to increase their international competitiveness.

D.  

Be more and more affected by changes in exchange rates.

Discussion 0
Question # 69

In a recession, the appropriate policy for a government seeking a recovery in the economy would be to:

Options:

A.  

cut public expenditure, reduce taxes, and lower interest rates

B.  

raise public expenditure, reduce taxes and lower interest rates

C.  

raise public expenditure, raise taxes and lower interest rates

D.  

cut public expenditure, raise taxes and raise interest rates

Discussion 0
Question # 70

A country has a trade deficit. The demand for its imports and exports are both price elastic. All of the following would lead to an a reduction in the country's trade deficit except which one?

Options:

A.  

A fall in consumer incomes in the country.

B.  

An improvement in the country's terms of trade.

C.  

A depreciation in the exchange rate for the country's currency.

D.  

A rise in the rate of inflation in its trading partners' economies.

Discussion 0
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