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In the Graph Shown, What Would Eliminate a Trade Deficit

Question 95

Multiple Choice

In the graph shown, what would eliminate a trade deficit if there were one? In the graph shown, what would eliminate a trade deficit if there were one?   A) The exchange rate appreciates. B) Domestic reservation wages rise. C) Foreign wages rise relative to domestic wages. D) Government runs expansionary policy.


A) The exchange rate appreciates.
B) Domestic reservation wages rise.
C) Foreign wages rise relative to domestic wages.
D) Government runs expansionary policy.

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