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प्रश्न
Suppose, Country X, has more inflation than Country Y. Which of the following is most likely situation to happen in such a case, assuming other factors being constant?
विकल्प
A surplus trade balance in Country X
A deficit trade balance for Country X
A rise in exports from Country X to Country Y
A deficit trade balance for Country Y
उत्तर
A deficit trade balance for Country X.
Explanation:
In country X, inflation indicates increasing manufacturing costs, which leads to higher pricing. As a result, exports become more expensive while imports become less expensive. It will result in a decrease in exports and an increase in imports. If a country's exports are less than its imports, the country will have a trade deficit.
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संबंधित प्रश्न
Suppose C = 40 + 0.8Y D. T = 50, I = 60, G = 40, X = 90, M = 50 + 0.05Y
a) Find equilibrium income
(b) Find the net export balance at equilibrium income
(c) What happens to equilibrium income and the net export balance when the government purchases increase from 40 to 50?
Answer the following question.
Define "Trade surplus". How is it different from "Current account surplus"?
Other things remaining the same, when in a country the market price of foreign currency falls, national income is likely ______.
BoP is measured as ______.
Which of the following items relate to BoP?
Autonomous items are related to those transactions which ______.
Accommodating items are those items of Bop which ______.
Disequilibrium in balance of payments means ______.
Which of the following had been responsible for the heavy burden of the deal and its interest?
The balance of trade shows a deficit of ₹300 crore. The value of exports is ₹500 crore. What is the value of imports?
______ refers to the situation of excess imports of goods over exports of goods.
Considering operating surplus which one of the following is not a part of it?
Assertion (A): The Balance of payments is in surplus, if autonomous receipts are greater than autonomous payments.
Reason (R): Autonomous transactions are determined by the difference in the Balance of Payments.
‘Current account deficit in an economy must be financed by a corresponding capital account surplus’.
Do you agree with the given statement? Give valid reason(s) in support of your answer.
Distinguish between Autonomous transactions and Accommodating transactions.
